> ## Documentation Index
> Fetch the complete documentation index at: https://docs.zen.land/llms.txt
> Use this file to discover all available pages before exploring further.

# Resolving Disputes

> What happens when buyer and seller disagree, and how disputes are resolved.

## When to Open a Dispute

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

<CardGroup cols={2}>
  <Card title="Try Communication First" icon="comments">
    Most issues stem from miscommunication. Talk to the other party before escalating.
  </Card>

  <Card title="Propose a Split" icon="divide">
    Would you accept a partial refund? Splits are faster and cheaper than disputes.
  </Card>
</CardGroup>

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

***

## The Dispute Process

<Steps>
  <Step title="Open Dispute">
    The **buyer** clicks "Open Dispute" on the escrow page. This pauses normal settlement.
  </Step>

  <Step title="Invite Agent">
    Either party invites the pre-selected agent to review the case.
  </Step>

  <Step title="Agent Reviews">
    The agent examines:

    * The escrow terms (PDF contract)
    * Evidence from both parties
    * Communication history (if provided)
  </Step>

  <Step title="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)
  </Step>

  <Step title="Funds Distributed">
    Agent fee is deducted first, then remaining funds are split as decided.
  </Step>
</Steps>

***

## Presenting Your Case

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

### What to Include

<CardGroup cols={2}>
  <Card title="The Agreement" icon="file-contract">
    What was promised? Reference the escrow terms and any off-chain discussions.
  </Card>

  <Card title="Evidence of Delivery" icon="box">
    Screenshots, files, links — proof of what was (or wasn't) delivered.
  </Card>

  <Card title="Communication" icon="message">
    Relevant messages showing the timeline and commitments.
  </Card>

  <Card title="Your Ask" icon="hand-point-right">
    Clearly state what resolution you want and why it's fair.
  </Card>
</CardGroup>

### Tips for a Strong Case

<AccordionGroup>
  <Accordion title="Be specific" icon="magnifying-glass">
    "The website doesn't work" is weak. "The contact form throws a 500 error when submitted" is strong.
  </Accordion>

  <Accordion title="Be honest" icon="scale-balanced">
    Agents can smell exaggeration. Acknowledge any mistakes on your side.
  </Accordion>

  <Accordion title="Be timely" icon="clock">
    Respond to agent questions quickly. Delays hurt your credibility.
  </Accordion>
</AccordionGroup>

***

## 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
```

<Note>
  Agent fees vary. Check the agent's fee before selecting them when creating the escrow.
</Note>

### Fee Caps

Agents must set fees within DAO-defined limits:

* **Minimum:** 0.1% (10 basis points)
* **Maximum:** 10% (1000 basis points)

***

## Agent Timeout

What if the agent doesn't respond?

<Warning>
  If an agent doesn't act within **7 days** of being invited, either party can claim timeout.
</Warning>

<Steps>
  <Step title="Wait 7 Days">
    Give the agent time to respond
  </Step>

  <Step title="Click 'Claim Timeout'">
    Either party can trigger this
  </Step>

  <Step title="Escrow Returns to Disputed">
    But now with NO agent (locked mode)
  </Step>

  <Step title="Settle Mutually">
    Propose a split, or seller can refund
  </Step>
</Steps>

<Note>
  Agent timeouts affect the agent's reputation and may result in DAO action.
</Note>

***

## Disputes in Locked Escrows

If you created an escrow without an agent:

<Card title="No Third-Party Resolution" icon="lock">
  There is no agent to invite. You must reach agreement with the other party.
</Card>

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)

<Warning>
  This is why we recommend always selecting an agent. Locked escrows are for advanced users who accept this risk.
</Warning>

***

## Escalation to DAO (Future)

<Info>
  **Coming in V2:** For extreme cases where agents misbehave, disputes may be escalated to the DAO for community resolution.
</Info>

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.

***

## FAQs

<AccordionGroup>
  <Accordion title="Can I open a dispute after protection time expires?">
    Yes, but only if the escrow is still in Fulfilled state (seller hasn't claimed yet).
  </Accordion>

  <Accordion title="Can the seller open a dispute?">
    No, only buyers can open disputes. But sellers can always refund or propose splits.
  </Accordion>

  <Accordion title="What if I disagree with the agent's decision?">
    Agent decisions are final for that escrow. You can report agent misconduct to the DAO for future action.
  </Accordion>

  <Accordion title="How long does resolution take?">
    Depends on the agent, but typically 1-3 days. The 7-day timeout is a safety net.
  </Accordion>
</AccordionGroup>