Reference
What it does
The fraud module receives and adjudicates reports of marketplace misconduct — falsified usage, identity abuse, malicious workloads — and carries the enforcement hooks that other modules honor: flags, holds, and penalties that alter what a flagged account may do.
It complements consensus-level slashing: where slashing punishes validator protocol violations, the fraud module addresses marketplace-level misconduct by tenants and providers.
Why it exists: Open participation means adversarial participation. A marketplace that cannot expel or penalize bad actors decays into one; putting fraud handling on-chain makes enforcement transparent, rule-bound, and reviewable instead of arbitrary platform moderation.
State
Primary objects
| Concept | Definition |
|---|---|
Fraud report | An on-chain allegation of misconduct with supporting evidence, subject to adjudication. |
Enforcement hook | A module-level check that honors fraud flags before permitting an action. |
Messages
Messages & queries
Message and query surfaces are documented at implementation level in the module docs ↗ and the source ↗. The objects above are the state those messages create and transition.
Connections
Module interactions
-
x/veidIdentity abuse reports feed back into trust standing. -
x/marketEnforcement outcomes can restrict marketplace participation. -
x/settlementDisputed or fraudulent usage is intercepted before it settles. -
x/supportDispute intake escalates to fraud handling where misconduct is alleged.
Flows
Core flow
- Allege — A report is filed. An on-chain allegation of misconduct with supporting evidence opens the case.
- Judge — The report is adjudicated. Transparent, rule-bound adjudication — enforcement by protocol, not arbitrary platform moderation.
- Enforce — Hooks engage. Flags and holds propagate to market participation, settlement, and support flows.
- Resolve — Standing updates. Outcomes feed trust standing, participation rights, and the auditable record.
Questions
Asked about x/fraud
What counts as marketplace fraud?
Falsified usage, identity abuse, malicious workloads — conduct enforced at the marketplace layer rather than the consensus layer.
How is this different from slashing?
Slashing punishes validator protocol violations like double-signing. The fraud module addresses tenant and provider misconduct — the two systems complement, never overlap.
Can enforcement stop a payout?
Yes. Disputed or fraudulent usage is intercepted before it settles, and enforcement outcomes can restrict marketplace participation until resolved.
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