Challenge Market

Karatum's verdicts and certificates should not depend on trusting Karatum. Anyone can put a bond against a verdict or a certificate and force a re-check. If the challenger is right it gets its bond back plus most of Karatum's matching stake; if it is wrong it loses its bond. Bonds, outcomes and payouts live in a contract; the re-checks are reproducible by anyone.

Verdict challenge

Claim: this verdict does not follow from its trace. Decided by re-running the published judge on the stored trace, the same computation anyone can do on /verify. When a zk proof that judge(trace) = verdict exists in ZkJudgeVerifier, anyone can settle the challenge on-chain without asking Karatum: the contract checks the proof itself and there is no appeal.

Certificate challenge: short the agent

Claim: this agent no longer performs at its certificate's lower bound. Decided by a fresh re-trial in Mirror from a seed that stays hidden (only its hash is published) until the result is posted. The challenger wins when even the upper end of the re-trial's 95% interval is below the certified lower bound. A won challenge revokes the certificate, opens an incident and, for agents with wallets, revokes them in the Guard.

Rules

Contract
ChallengeManager 0x9f432E54316fe8458B5CaaE01e02A70887AD3266 on Ethereum Sepolia (source verified on Sourcify)
Bond
max(10.00 tUSDC, 1% of the subject's value). A certificate is valued at 100 tUSDC per karat, so a 23-karat certificate takes a 23 tUSDC bond. Test USDC on Sepolia has an open mint: no real money is involved anywhere.
Matching stake
Every challenge is matched by the same amount from Karatum's defender pool, so Karatum loses money when it is wrong.
Payout
Winner: own bond back plus 80% of the loser's stake. The other 20% goes to the treasury. Paid as credits, withdrawn by the winner (works even while new challenges are paused).
Windows
A verdict can be challenged for 30 days after it is decided, a certificate until it expires. The resolver must answer within 2 days, or the challenge expires and every bond goes back. After a resolution against the challenger there is a 1 hour dispute window.
Escalation
The challenger can dispute a resolution against it (not a zk-settled one) by doubling its bond: validators staked in ValidatorStaking re-derive the outcome from the public evidence and vote for 1 day, weighted by stake. Overturned on a strict majority with a quorum of 600 KARAT staked; without quorum the resolution stands and the escalation bond is refunded.
Anti-griefing
One active challenge per subject, a 1 day cooldown on a subject after a failed challenge, a 3 days cooldown on a challenger who lost, bonds that scale with the value at stake.
Which re-trials run today
Re-trials of Karatum's deterministic scripted builds run now. Re-trials of LLM builds are queued and marked pending: Karatum's LLM gateway is down. A queued challenge that cannot be re-tried before its deadline expires with a full refund.

Numbers

2challenges opened
1won by the challenger
1lost by the challenger
0in progress
2subjects registered on-chain

Drills (rehearsals labelled as such) are included: 1.

Challenges

#KindSubjectBondStatusOutcomeOpened
#2certificateDRILLcert:scripted-reference-frontier-v1:web323.00 tUSDCFinalchallenger won2026-10-16 13:49:48 UTC
#1verdictjudge-sample-2049:hygiene-05:scripted-naive-frontier-v110.00 tUSDCFinalchallenger lost (zk proof)2026-10-16 13:44:36 UTC

API: GET /v1/challenges, GET /v1/challenges/market, GET /v1/challenges/subject?kind=…&ref=…, GET /v1/challenges/:id/evidence · Methodology: docs/methodology/challenges.md