During the verification stage on Reality.eth, users must put up a Bond of 1ETH to as part of their attestation that the buyout proposal is indeed valid. Users can contest by doubling the Bond. At the end of the verification period, users who have put up a Bond for the incorrect answer will lose their Bonded ETH, those who place a bond for a correct answer receive their ETH back, and those who successfully challenge someone who bonded an incorrect answer receives the ETH staked by the incorrect user. This process prevents malicious actors who lie to pass invalid proposals.