# The (optional) Need for Arbitration

**Assigning an Arbitrator is optional**, however, as no data source that is external to the network can be guaranteed to be correct or incorruptible, it may be necessary in some cases to introduce a trusted third party arbitrator into the settlement process of a SmartPiggies option, particularly if that option contains a large amount of collateral.

Examples of a data source failure that would warrant arbitration:

* Human error
* Corrupt data records
* Corrupt reporting authorities
* Infrastructure failure
* Price manipulation

Employing an Arbitrator introducing it's own risks. An individual entering a contract should carefully consider whether an Arbiter is trustworthy as the assigned Arbiter could potentially collude to force the contract to settle in the counterparty's interest.

By entering a contract with an assigned Arbiter, a user is implicitly agreeing to the Arbiter's future actions or inactions.

In order to assist in a user's decision to agree to an assigned Arbiter, SmartPiggies application has a built in inspector to allow users to review the past behavior of an assigned arbiter.