Kleros is an on-chain dispute resolution and arbitration protocol developed for the EVM. It enables users to become jurors in resolving debates on-chain by staking the system-native token (PNK), present evidence, and vote in favor of a side.

The protocol uses a round-based system where each dispute has multiple rounds until a consensus is reached. After an ultimate winner is decided, the execution period determines the degree of coherence in each round. Incoherent users are penalized for voting incorrectly and penalties are distributed evenly among coherent jurors.

The full report details the security issues identified during manual review of the Kleros V2 smart contract code and the handling of each by the Kleros team.