Arbiter

Arbiter

The judgment layer for autonomous agents.

An AI agent about to act on the world often needs a judgment it cannot make by itself: *is this transaction safe to sign, is this counterparty real, is this photo actually what it claims to be.* Arbiter sells those judgments one call at a time, paid over x402 in USDC on Algorand.

Three routes, one response contract:

Every route returns the same verdict envelope, so an agent integrates one shape and can then ask for any kind of judgment without new branching logic:

{

"decision": "block", // allow | warn | block | escalate "risk": 100, // 0-100 "confidence": 1, // 0-1; low confidence forces "escalate" "findings": [ /* itemised, each with severity, detail and source */ ], "evidence": { /* the decoded transaction, the counterparty record */ }, "meta": { "degraded": false, "latencyMs": 378 } }

New here, or explaining this to someone non-technical?

What Arbiter actually does — no code, no jargon.

Live

https://arbiter-hs23.onrender.com — API, and the reviewer app at /work.

Preflight: 18 passed, 0 blocking failures. Running on Render's free plan, which has no persistent disk and spins down after 15 minutes idle — see DEPLOY.md for what that costs and the upgrade needed before the October leaderboard window.

Status

The transaction firewall

Autonomous agents lose funds in a small number of specific ways. The firewall decodes the actual transaction bytes and reports what signing would really do:

• Rekey — rekeyTo permanently transfers signing authority over the account
• Close-remainder — sweeps the entire ALGO balance regardless of the stated amount
• Asset close-out — sweeps the entire ASA holding regardless of the stated amount
• Clawback — moves assets out of a third party's account
• Fee drain — the balance leaves via an oversized fee rather than a visible transfer
• App delete / update — destroys or silently replaces contract logic
• Asset-level risk: creator-held clawback and freeze authority, non-existent assets
• Account-level risk: signer already rekeyed, unfunded recipient, expired validity window

Run it against real, freshly-encoded transactions:

npm run demo:attacks

[BLOCK]  Rekey attack              risk=100/100  confidence=1  1365ms

[BLOCK] Close-remainder drain risk=100/100 confidence=1 378ms [BLOCK] Asset close-out drain risk=100/100 confidence=1 1432ms [BLOCK] Fee drain risk=100/100 confidence=1 379ms [ALLOW] Benign payment risk=0/100 confidence=1 398ms

The benign case returning zero findings matters as much as the blocks — a firewall that cries wolf gets switched off.

Counterparty verification

Catches the two silent, expensive failures a payout agent cannot see by reading an invoice:

• Swapped payment address — the invoice is genuine and the payee is real, but the address belongs to someone else. Resolved against the NFD registry and compared to every address the identity legitimately controls.
• Missing asset opt-in — on Algorand an ASA transfer to an account that has not opted in is rejected outright. The payment simply never arrives.

Plus rekeyed recipients, frozen holdings, below-minimum balances, unregistered or expired identities, and never-funded addresses.

npm run demo:counterparty     # live NFD registry + Algorand mainnet, read-only

The two cases worth reading are adjacent and opposite: an identity that verifies but whose address cannot receive the asset, and an identity that fails on an address that could. Both block, for entirely different reasons.

Human judgment

Questions a model cannot settle alone go to vetted reviewers. The paid call long-polls for a bounded window; if reviewers answer in time the verdict returns inline, otherwise the caller gets a pending verdict and a free retrieval URL. Timing out never costs a second payment.

npm run demo:human

• Majority vote across a configurable quorum, with the agreement ratio exposed
• Confidence is agreement discounted by how proven the panel is, so a unanimous answer from unproven reviewers is not treated as certainty
• Reviewers are paid for participating, not for agreeing — paying for agreement incentivises guessing the majority rather than reporting what you saw
• Implausibly fast answers are flagged as a quality signal
• Per-reviewer reliability accrues from consensus agreement over time

Worker API (/v1/work/*) is unpriced: reviewers are the supply side.

Paying reviewers

npm run settle -- --dry-run    # check everything, send nothing

npm run settle # pay

Two rules govern this, and both cost something to follow:

Claim before broadcasting. Payouts move to settling with an attempt id *before* any transaction is sent, and that attempt id is written into the transaction's note field. A process that dies mid-flight therefore leaves money unpaid rather than paid twice — unpaid is recoverable by a person reading the stuck rows against the ledger, paid twice is not.

Check the payee before paying. Every payout address goes through Arbiter's own /v1/judge/counterparty engine first. Not decoration: a USDC transfer to an account that has not opted in is rejected by the protocol, so paying blind burns a fee and leaves the reviewer unpaid with no explanation. Blocked payouts stay pending and are retried once the reviewer opts in.

[PAID]  0.150000 USDC -> GBRO5EM4JM57PDPS…

txid SIEXIGX6KQKA4D4PTOUL7R6M5BDP4BIUEW2TTOIFZHBU233LSKWQ note arbiter:payout:pay_msft8csu_rfq0ch

[SKIP] 0.150000 USDC -> OEQWDYGTEXMDWSH2… Arbiter blocked this payee: Counterparty has not opted in to the asset

The payout account is configured separately from PAY_TO on purpose. PAY_TO accumulates revenue and its key never needs to be on a server; the payout account holds working capital only, so a compromised host cannot drain earnings.

Design rule: the caller has already paid

By the time an engine runs, the agent has been charged. So no upstream failure may throw. Every algod lookup has a hard timeout and returns a result that says whether data was actually obtained; a failed lookup lowers confidence and sets meta.degraded, and the static decode rules — which catch the critical severities — still run. A degraded verdict is still a useful verdict.

Separately, confidence < 0.4 returns escalate rather than allow, so a thin-evidence verdict can never be mistaken for a clean bill of health.

Getting it into agents

Volume on a usage-ranked leaderboard comes from other people's agents calling you, so the clients are the product surface, not an afterthought. Full detail in clients/README.md.

Spend limits live in the client rather than in advice to integrators, because an agent in a retry loop against a paid endpoint is a wallet-draining bug:

const client = new ArbiterClient({

baseUrl: process.env.ARBITER_URL, privateKey: process.env.ALGO_KEY, maxPricePerCallUsd: 0.5, maxTotalSpendUsd: 10, });

Both caps are enforced in the payment selector, before anything is signed.

Why Python needs a sidecar

Paying x402 on Algorand requires an AVM scheme client, and that exists only in TypeScript today. x402 2.18 ships no AVM client, and x402-avm 2.0.2 — despite the name — ships none either, has no algosdk dependency, and installs *into the x402 namespace*, overwriting the base package. So a Python agent cannot construct an Algorand x402 payment at all.

@arbiterlabs/proxy therefore holds the key, pays, and re-exposes the judgments unpriced on loopback. That is also the better arrangement in general: one process holds the funded key and enforces one budget, instead of every agent process carrying a copy of both.

Setup

npm install

cp .env.example .env # then set PAY_TO npm run dev

PAY_TO must be a real Algorand address opted in to the USDC ASA for the network you are running (testnet 10458941, mainnet 31566704), or settlement fails.

Verify the payment gate:

curl -i -X POST http://localhost:4021/v1/judge/transaction \

-H 'content-type: application/json' \ -d '{"chain":"algorand","transaction":"abc"}'

Expect HTTP 402 with a base64 PAYMENT-REQUIRED header carrying the price, asset, payTo, feePayer and the Bazaar discovery schema.

A note on the facilitator network identifier

The GoPlausible facilitator advertises Algorand using the full padded base64 genesis hash as the CAIP-2 reference:

algorand:SGO1GKSzyE7IEPItTxCByw9x8FmnrCDexi9/cOUJOiI=

while @x402/avm's ALGORAND_TESTNET_CAIP2 uses the CAIP-2-legal 32-character truncation:

algorand:SGO1GKSzyE7IEPItTxCByw9x8FmnrCDe

Both normalize to the same network inside the AVM scheme, but the resource server validates route configuration against the facilitator's advertised strings by exact equality — so using the SDK constant fails startup with missing_facilitator. src/facilitator.ts resolves the identifier from /supported at boot and matches by normalization, which works with either form and will keep working if the padding is fixed upstream. It also picks up the advertised feePayer, so callers can pay in USDC without holding ALGO for gas.

Competition configuration

Built for the Algorand Global x402 Challenge as a Composite Entry: all three routes share one payTo, so their volume rolls up into a single merchant entry while each route stays individually discoverable in the Bazaar.

Requirements wired in and verified in the live 402 response:

• Paid endpoint returning HTTP 402 without payment
• GoPlausible facilitator (not an alternative facilitator)
• Bazaar discovery extension with per-route input/output schemas
• x402-global-challenge tag on every route
• Single consistent payTo across all routes
• Deployed to public HTTPS on MainNet
• One real