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@infografx infografx commented Nov 6, 2019

From the DLC whitepaper.

  1. If Olivia attempts to publicly report two different prices (in order to assume the role of a counterparty in a contract and “win” the bet regardless of the true outcome), she will reveal her permanent private key, as well as the k value for the particular contract she attempted to double-report:

"checkoraclefraud 1"

  1. Check for possible ofracle fraud. If Olivia herself is a counterparty to a contract (e.g. Alice is Olivia), she can cause it to execute in an arbitrary fashion withouth revealing her private key.
    This is detectable, and the defrauded party Bob can provide a compact proof of the fraud so that all other users can stop using Olivia’s commitments and signatures:

"publishedTX = lit2.rpc.GetLatestTx(CIdx=1)"
"msg = lit2.rpc.GetMessageFromTx(CIdx=1, Tx=str(publishedTX["Tx"]))"

"proofOfMsg = lit2.rpc.CompactProofOfMsg(
OracleValue=msg["OracleValue"],
ValueOurs=msg["ValueOurs"],
ValueTheirs=msg["ValueTheirs"],
OracleA=msg["OracleA"],
OracleR=msg["OracleR"],
TheirPayoutBase=msg["TheirPayoutBase"],
OurPayoutBase=msg["OurPayoutBase"], Tx=publishedTX["Tx"])
"

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