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Overview

The Resolution Engine is the most critical component of the Mouth protocol. It determines bet outcomes and ensures fair, transparent resolution.

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Resolution Types

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Type 1: Automatic (Oracle-Based)

For bets with quantifiable, verifiable conditions: Supported conditions:
ConditionData SourceExample
Token price above/below XChainlink, Pyth”ETH > $5,000”
FDV above/below XCoinGecko API + oracle”Monad FDV < $1B”
TVL above/below XDeFi Llama API”Aave TVL > $20B”
On-chain event occurredRPC query”Uniswap v4 deployed”
How it works:
  1. At bet creation, the resolution criteria are stored as structured metadata: 
    {
  "type": "price_threshold",
  "asset": "ETH",
  "condition": "above",
  "threshold": 5000,
  "source": "chainlink"
}
  2. At expiration, the engine fetches the data from the specified source
  3. Evaluates the condition against the data
  4. Submits the resolution on-chain

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Type 2: Manual (Mouth Team)

For bets with subjective or off-chain conditions: Process:
  1. Bet expires and is flagged in the Mouth admin dashboard
  2. A Mouth team member reviews the bet terms and checks the outcome
  3. Resolution is submitted via the admin dashboard
  4. If disputeable: 48-hour dispute window starts. If disputed, the team re-reviews with additional evidence and can call reResolve() to update the outcome.
  5. If non-disputeable: bet is immediately finalized. For PvP 1v1, the backend calls resolverClaim() to distribute funds.

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Dispute Mechanism

The dispute mechanism only applies to disputeable bets. Non-disputeable bets are immediately finalized after resolution.

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Window

Every disputeable resolution (automatic or manual) has a 48-hour dispute window before finalization.

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Filing a Dispute

  1. Either party clicks “Dispute” on the bet page within 48 hours
  2. Must provide:
    • Reason: Why they believe the resolution is incorrect
    • Evidence: Links, screenshots, data sources supporting their claim
  3. A dispute bond may be required in the future to prevent spam (not in v1)

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Dispute Review Process

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Dispute Outcomes

OutcomeResult
Dispute rejectedOriginal resolution stands, bet is finalized
Dispute upheldResolution is overturned, new outcome is set
InconclusiveBet is resolved as a Draw, both parties refunded

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Resolution on Smart Contract

The Resolution Engine interacts with the Bet smart contract via a dedicated resolver wallet: 
resolverWallet.resolve(betAddress, outcome)
The smart contract enforces:
  • Only the authorized resolver address can call resolve()
  • Resolution can only happen after the expiration timestamp
  • The outcome must be one of: ChallengerWins, OpponentWins, Draw
  • If disputeable: status → Resolved, 48-hour dispute window timer starts on-chain
  • If non-disputeable: status → Finalized immediately, claimable balance is snapshotted
After finalization, the resolver can optionally call resolverClaim() to batch-distribute all funds to winners (especially useful for PvP 1v1 bets). For Open PvP bets with many opponents, individual claim() calls are safer to avoid out-of-gas issues. The resolver can also:
  • Call reResolve() during the dispute window to update the outcome (disputeable only)
  • Call withdraw() after the acceptance deadline to clean up deserted bets (Pending status only)

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Future: Decentralized Resolution

In future versions, Mouth may integrate decentralized arbitration for disputes:
  • UMA Optimistic Oracle: Propose outcomes with a dispute bond, escalate to UMA token holders if disputed
  • Kleros: Decentralized court system for subjective disputes
  • Reality.eth: Crowd-sourced oracle with economic incentives for truthful reporting
This removes the trust assumption on the Mouth team for manual resolutions.