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How OpenPeer's arbitration system works now and in the future
OpenPeer currently provides a centralized arbitration system run by OpenPeer Labs and affiliates. In the case of a disputed transaction where one party claims the other didn't complete the obligated steps either party can open a dispute.
Disputes can only be open when the trader buying crypto has claimed to have paid and made the necessary onchain transaction.
To open a dispute users must pay a ~$1 fee in the base currency on the chain they are transacting on. For example on the Polygon network this fee is 1 MATIC. This disincentivizes scammers from performing a sybil attack across a wide range of ads on the protocol. In the future this fee will be dynamic based on the trade value. The loser of the dispute will lose their fee while the winner will have their fee returned.
Once one party opens a dispute and provides evidence the other party has 24 hours to provide counter evidence. Please share as much details as you can provide including bank statements and transfer receipts. After 24 hours or after both parties have submitted evidence, the OpenPeer Labs team or affiliates will choose a winner and resolve the dispute.
It is important to note that with the current architecture we can only choose one winner. Disputed funds cannot be split between both parties. If you both agree to another resolution please work out the details amongst yourselves before opening a dispute within the protocol.
In the future OpenPeer will have a permissionless resolution system where protocol participants can stake tokens and participate in resolving disputes in return for dispute fees.