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x/fraud — Fraud module

The x/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, x/fraud addresses marketplace-level misconduct by tenants and providers.

  • Reports land on-chain. A report files an allegation of misconduct with supporting evidence, opening a case anyone can follow through its lifecycle (FraudReport, FraudReports).
  • Adjudication is rule-bound. Cases escalate (MsgEscalateFraudReport), moderators get assigned (MsgAssignModerator, ModeratorQueue), and each report is resolved or rejected with its status tracked (MsgResolveFraudReport, MsgRejectFraudReport, MsgUpdateReportStatus) — leaving an auditable trail (AuditLog).
  • Enforcement propagates. Flags and holds propagate as enforcement hooks other modules honor: market participation can be restricted, disputed or fraudulent usage is intercepted before it settles, and support disputes escalate here where misconduct is alleged.
  • Standing updates. Outcomes feed trust standing in x/veid, participation rights, and the auditable record.

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.

ConceptDefinition
Fraud reportAn on-chain allegation of misconduct with supporting evidence, subject to adjudication.
Enforcement hookA module-level check that honors fraud flags before permitting an action.
  1. Allege — A report is filed. An on-chain allegation of misconduct with supporting evidence opens the case.
  2. Judge — The report is adjudicated. Transparent, rule-bound adjudication — enforcement by protocol, not arbitrary platform moderation.
  3. Enforce — Hooks engage. Flags and holds propagate to market participation, settlement, and support flows.
  4. Resolve — Standing updates. Outcomes feed trust standing, participation rights, and the auditable record.
MessagePurpose
MsgSubmitFraudReportFiles a fraud report with supporting evidence.
MsgEscalateFraudReportEscalates a filed report for deeper adjudication.
MsgResolveFraudReportResolves a report with a finding.
MsgRejectFraudReportRejects a report that does not stand up.
MsgAssignModeratorAssigns a moderator to work a report.
MsgUpdateReportStatusUpdates the status of a report under review.
MsgUpdateParamsGovernance-only update of module parameters.
QueryPurpose
FraudReport / FraudReportsA single report and the full report list.
FraudReportsByReporter / FraudReportsByReportedPartyReports filtered by who filed them or who they name.
ModeratorQueueReports awaiting moderator attention.
AuditLogThe module’s auditable record of adjudication activity.
ParamsCurrent module parameters.
ModuleHow they interact
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.

Falsified usage, identity abuse, malicious workloads — conduct enforced at the marketplace layer rather than the consensus layer.

Slashing punishes validator protocol violations like double-signing. The fraud module addresses tenant and provider misconduct — the two systems complement, never overlap. See Slashing.

Yes. Disputed or fraudulent usage is intercepted before it settles, and enforcement outcomes can restrict marketplace participation until resolved. See the x/settlement module.