In order to verify ad claims upon the protocol, verifiers attests whether Users’ Ad Claims are truthful. This verification relies on signals that aren’t present on-chain, therefore, the Protocol is agnostic to the criteria used by Verifiers to decide whether or not to attest Ad Claims.
To confirm that an Ad Claim’s legitimacy, the Verifier puts the bid price amount in an escrow (the “Arbitrage Escrow”). At this point, two things happen:
1. the share of the Bid Price that is due to the User, if any 22 , is deducted from the amount in the Arbitrage Escrow and transferred to the User’s wallet (eventually, this is distributed downstream to the Attestor);
2. the control over the Arbitrage Escrow account is transferred to the Advertiser. Three possible paths might follow:
a) The Advertiser releases the escrow back to the Verifier (signalling that the Advertiser is happy with ad quality and thus the transaction is successfully finalized), in which case the Bid Price is also automatically transferred from the Advertiser’s central address to the Verifier.
b) The Advertiser is idle, in which case, after a certain time, the escrow and the Bid Price are linearly released to the Verifier.
c) The Advertiser rescues the amount in the arbitrage escrow (signalling that the advertiser does not believe the Ad Claim to be truthful, contrary to what the Verifier attested), in which case Bid Price is not transferred to the Verifier.