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When to Open a Dispute

Not every issue needs a formal dispute. Consider these first:

Try Communication First

Most issues stem from miscommunication. Talk to the other party before escalating.

Propose a Split

Would you accept a partial refund? Splits are faster and cheaper than disputes.
Open a dispute when:
  • The other party is unresponsive
  • You fundamentally disagree on what was agreed
  • You believe the other party is acting in bad faith

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The Dispute Process

1

Open Dispute

The buyer clicks “Open Dispute” on the escrow page. This pauses normal settlement.
2

Invite Agent

Either party invites the pre-selected agent to review the case.
3

Agent Reviews

The agent examines:
  • The escrow terms (PDF contract)
  • Evidence from both parties
  • Communication history (if provided)
4

Agent Decides

The agent sets a split:
  • 80% buyer / 20% seller (buyer mostly right)
  • 50% / 50% (shared fault)
  • 10% buyer / 90% seller (seller mostly right)
5

Funds Distributed

Agent fee is deducted first, then remaining funds are split as decided.

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Presenting Your Case

When an agent is invited, you’ll need to make your case clearly:

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What to Include

The Agreement

What was promised? Reference the escrow terms and any off-chain discussions.

Evidence of Delivery

Screenshots, files, links — proof of what was (or wasn’t) delivered.

Communication

Relevant messages showing the timeline and commitments.

Your Ask

Clearly state what resolution you want and why it’s fair.

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Tips for a Strong Case

“The website doesn’t work” is weak. “The contact form throws a 500 error when submitted” is strong.
Agents can smell exaggeration. Acknowledge any mistakes on your side.
Respond to agent questions quickly. Delays hurt your credibility.

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Agent Fees

When an agent resolves a dispute, they earn a fee: 
Total Funds: $1,000
Agent Fee: 5% = $50
Remaining: $950

Agent Decision: 60% buyer / 40% seller
- Buyer receives: $570
- Seller receives: $380
Agent fees vary. Check the agent’s fee before selecting them when creating the escrow.

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Fee Caps

Agents must set fees within DAO-defined limits:
  • Minimum: 0.1% (10 basis points)
  • Maximum: 10% (1000 basis points)

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Agent Timeout

What if the agent doesn’t respond?
If an agent doesn’t act within 7 days of being invited, either party can claim timeout.
1

Wait 7 Days

Give the agent time to respond
2

Click 'Claim Timeout'

Either party can trigger this
3

Escrow Returns to Disputed

But now with NO agent (locked mode)
4

Settle Mutually

Propose a split, or seller can refund
Agent timeouts affect the agent’s reputation and may result in DAO action.

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Disputes in Locked Escrows

If you created an escrow without an agent:

No Third-Party Resolution

There is no agent to invite. You must reach agreement with the other party.
Your options:
  1. Propose a Split — Negotiate percentages until you agree
  2. Seller Refunds — Seller can always return 100% to buyer
  3. Accept Stalemate — Funds remain locked forever (neither party gets them)
This is why we recommend always selecting an agent. Locked escrows are for advanced users who accept this risk.

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Escalation to DAO (Future)

Coming in V2: For extreme cases where agents misbehave, disputes may be escalated to the DAO for community resolution.
Currently, the DAO can:
  • Slash agent stakes for misconduct
  • Blacklist bad-faith agents
  • Adjust protocol parameters
But individual dispute resolution is handled by agents, not DAO voting.

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FAQs

Yes, but only if the escrow is still in Fulfilled state (seller hasn’t claimed yet).
No, only buyers can open disputes. But sellers can always refund or propose splits.
Agent decisions are final for that escrow. You can report agent misconduct to the DAO for future action.
Depends on the agent, but typically 1-3 days. The 7-day timeout is a safety net.