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What to do in a Fork
TL;DR: If a market in Augur v2 forks, REP holders have 60 days to participate or you will lose all your REP.
When a market is disputed enough, it reaches a fork state. Forking is a special state that can last up to 60 days. Forking is the market resolution method of last resort; it is a very disruptive process and is intended to be a rare occurrence.
Every Augur market and all REP tokens exist in unique versions of Augur called universes. REP tokens can be used to report on outcomes only for markets that exist in the same universe as those tokens. When a market forks, new universes are created. Forking creates a new child universe for each possible outcome of the forking market (including Invalid).
This market is referred to as the forking market, as it has implications for the other markets that currently exist. While an Augur market is in this state, no new markets can be created and the reporting process for all other markets pauses. All REP holders who want to use Augur then have to decide what the correct answer is for the forking market.
Market creators and traders also have to decide on which universe they want to participate in as well. It is assumed that all regular users will want to interact with the truthful one. A forked market can no longer be disputed and is considered finalized once the fork is complete.
When a fork is initiated, disputing for all other non-resolved markets is put on hold until this fork resolves. The forking period is much longer than the usual fee window because a fork’s final outcome cannot be disputed and the platform needs to provide ample time for REP holders and service providers (such as wallets and exchanges) to prepare.
New universes are created for each potential outcome, spawned from the current genesis universe where the forking market originated from. Each universe is separate from all the other universes (they don’t share markets, trading fees, etc).
For example, a “Yes/No” market has 3 possible outcomes: Yes, No, and Invalid. Thus, a “Yes/No” forking market will create three new child universes: universeYes, universeNo, and universeInvalid