Dispute Resolution

The Dispute Resolution Phase is triggered when either the client or the service provider raises a dispute. This phase involves a review by the designated dispute resolver (e.g., the platform, Marketplace) to determine how the funds should be allocated. The escrow contract remains in a locked state, with no funds released, until the dispute is resolved.

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Key Actions

1. Raising a Dispute:

   • The client (or Service Provider) identifies issues with the milestone deliverable and raises a dispute.

   • Evidence or supporting documentation (e.g., screenshots, contracts, delivery notes) is submitted to the dispute resolver (As a URL)

   • The escrow contract updates:

     • Milestone Status: Set to In Dispute.

     • Dispute Flag: Updated to reflect the dispute status.

2. Dispute Resolver Review:

   • The dispute resolver (Marketplace) reviews the case, including:

     • Evidence provided by the client.

     • Responses or counter-evidence from the service provider (Bob).

   • The resolver makes a decision on fund allocation (e.g., full refund to client, partial payment to service provider).

3. Escrow Contract Updates:

   • Based on the resolver’s decision, the escrow contract is called for the release with:

     • Funds for Service Provider: Amount to be sent to service provider

     • Funds for Client: Amount to be sent back to the client

4. Sign and Release:

   • The resolver signs the resolution, releasing payment as set and setting the released flag to TRUE

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Key Metadata

1. Milestone Status:

   • In Dispute: Indicates the milestone is under review by the dispute resolver.

2. Resolver Decision:

   • Contains the final decision, including updated allocations of funds.

3. Updated Amounts:

   • Reflects any changes to the original escrowed amount based on the resolution.

4. Final Approval Flag:

   • Set to True once the dispute is resolved, enabling the transition to the Release Phase.

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Phase Outcomes

1. Resolution Achieved:

   • Funds are allocated according to the dispute resolver’s decision, ensuring a fair outcome for both parties.

2. Escrow Prepared for Release:

   • The resolution is set, enabling the transaction to transition to the Release Phase.

3. Dispute Transparency Ensured:

   • All resolution details, including fund adjustments and final decisions, are recorded and visible to participants.