The dispute process is how a proposed outcome can be challenged before it becomes final. It's the safety valve of an optimistic oracle.
What is the dispute process?
On Polymarket (resolution docs):
- A proposer submits an outcome with a bond, typically $750 in pUSD.
- During a two-hour window, anyone can dispute by posting an equal bond.
- First dispute: the proposal is discarded and a new proposal round begins.
- Second dispute: the question goes to UMA's Data Verification Mechanism (DVM). After a 24-48 hour debate period, token holders vote over about 48 hours.
| Vote result | Bonds |
|---|---|
| Proposer right | Proposer gets bond back + half of disputer's |
| Disputer right | Disputer gets bond back + half of proposer's |
| Too early | Disputer gets bond back + half of proposer's |
| Unknown | Market can resolve 50/50 |
Example
A market asks whether a politician "announced" a candidacy. A proposer says YES based on an interview hint; a trader disputes, arguing no formal announcement was made. The question escalates, voters read the rules, and they decide based on the exact definition of "announced".
Why it matters
Disputes protect against wrong outcomes but delay payouts by days. Ambiguous wording is the main cause, so prefer markets with clear rules and resolution sources.