Dispute rules
How anyone can challenge a finalized Kimp Index value within 30 minutes, what evidence counts, and how the Dispute Committee and governance resolve it.
Automatic flagging catches reporters that disagree with the median. Disputes catch the case the median cannot: a finalized value that does not reflect the market. Anyone can open one. There is no allowlist for challengers.
Parameters#
| Parameter | Value |
|---|---|
| Who can dispute | Anyone |
| Dispute window | 30 minutes after an epoch's finalization |
| Dispute bond | Set by governance |
| Evidence | Timestamped source-exchange data |
| First instance | Dispute Committee, elected by governance |
| Execution delay | 48-hour timelock |
| Escalation | $KIMP governance vote |
| Maximum slash if upheld | 50% of the reporter's bond |
Opening a dispute#
A challenger opens a dispute against a specific asset, epoch and one or more reporters, within 30 minutes of that epoch's finalization. The challenger posts the dispute bond in the same transaction. Disputes after the window are rejected by the contract.
The 30-minute window is short by design. Source data for a given minute is easiest to reproduce shortly after the fact, and a short window limits how long a finalized value remains contestable.
Evidence#
Evidence is timestamped data from the source exchanges and the FX reference named in Sources. A complete submission shows, for the disputed epoch:
- 1The Upbit KRW last trade price and its timestamp.
- 2The last trade prices on Binance, Coinbase and OKX, with timestamps.
- 3The USDKRW mid used, with its timestamp.
- 4The index value these inputs produce under the formula, and its difference from the reported value.
Reporters are expected to retain their own raw data for each report and to produce it when disputed. A reporter that cannot show the inputs behind its report weakens its own case.
Resolution#
The Dispute Committee reviews the evidence from both sides and decides whether the reporter's value deviated from what the sources supported. The committee is elected by $KIMP governance.
A decision is queued in the 48-hour timelock before it executes. During that period either party can escalate to a $KIMP governance vote, which follows the standard governance process. A governance outcome replaces the committee decision.
Outcomes#
| Outcome | Reporter | Challenger | Burned |
|---|---|---|---|
| Upheld | Up to 50% of bond slashed | Receives half of the slashed amount; dispute bond returned | Half of the slashed amount |
| Rejected | Receives the dispute bond | Forfeits the dispute bond | Nothing |
The slash size within the 50% limit reflects the size and impact of the deviation. A reporter found to have deviated deliberately can also be removed from the active set by governance.
Effect on markets#
A dispute concerns a reporter's conduct and bond. It does not reopen finalized index values, marks, liquidations or settlements. Finality of the index is what allows positions to settle on schedule.
The protection for traders against a bad value is structural: the median, the quorum, the circuit guard for moves over 300 bps and the 1-hour settlement TWAP. Disputes make attempts to defeat those protections costly after the fact.
Why a bond on both sides#
The reporter bond makes misreporting expensive. The dispute bond makes frivolous disputes expensive. Rejected disputes pay the reporter for the cost of defending a correct report. Upheld disputes pay the challenger for the work of monitoring.