The free option problem in atomic swaps arises when one party exploits market conditions by deciding to complete or abort a swap based on price movements, leaving the counterparty at a disadvantage. These cases are covered in scenarios and safeguards. Garden addresses this challenge with built-in mechanisms that ensure fairness and accountability for the participants.

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Solver safeguards

Trade success insurance

Solver and its respective stakers are slashed if the solver fails to initiate a deposit on their side after the user’s deposit. The slashed amount is awarded to the user.

Accountability mechanism

This penalty directly discourages solver misuse and ensures stakers will keep solvers accountable as they can always switch their vote to another solver.

Performance scoring

Settlement speed is already factored into the solver score formula, reducing the ability of unreliable solvers to win future intents.

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User safeguards

If a solver fails to initiate an asset after a being matched with the user, a portion of the stakers’ and solvers’ SEED stake (proportional to the trade size) is slashed and awarded to the user.
Stakers earn yield from the protocol and govern its operations, making them responsible for ensuring users interact with the UI effectively.