Disputes

Disputes are an explicit, human-driven mechanism in Offer Hub.

They exist to handle cases where:

• delivery is contested,

• approval is withheld,

• cancellation is requested,

• or evidence must be reviewed.

Offer Hub does not rely on timeouts or automated arbitration. Instead, disputes are resolved by the marketplace platform, acting as customer support, with outcomes enforced by escrow contracts.

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Goal

Allow:

• buyers or sellers to raise a dispute,

• the platform to review evidence and decide the outcome,

• the escrow to enforce the final resolution (release or refund).

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Actors

• Buyer

• Seller

• OfferHub UI

• OfferHub Backend (Orchestrator)

• Trustless Work Escrow

• Trustless Work dApp (Backoffice)

• Dispute Resolver Address (Platform-controlled)

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When a Dispute Can Be Raised

A dispute can be initiated at any time after the escrow is funded and before final release.

Typical scenarios include:

Buyer-Initiated Disputes

• Product never arrived

• Service was not delivered as agreed

• Delivery evidence is insufficient

• Seller marked delivery prematurely

Seller-Initiated Disputes

• Buyer is unresponsive

• Buyer refuses to approve despite delivery

• Seller wants to cancel and refund

• Seller has strong evidence of fulfillment

Both parties have the right to flag the transaction, but neither can resolve it themselves.

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Dispute Initiation

1. Buyer or Seller Raises a Dispute

User → OfferHub UI: Raise Dispute

This action:

• is initiated off-chain,

• records the intent to dispute,

• does not move funds yet.

OfferHub captures:

• who raised the dispute

• reason code

• optional evidence (messages, files, links)

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2. Escrow Is Marked as Disputed

OfferHub → Trustless Work:
  Mark escrow as Disputed

Once disputed:

• the escrow is frozen,

• no release or refund can occur automatically,

• control moves to the Dispute Resolver role.

The order status is updated to Disputed.

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Platform Resolution (Backoffice Flow)

Important Design Decision

Offer Hub does not implement its own dispute backoffice.

Instead, it leverages the existing Trustless Work dApp, which already supports:

• escrow inspection,

• role-based signing,

• release and refund execution.

This avoids duplication and ensures consistent behavior.

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3. Platform Logs Into Trustless Work dApp

A platform operator (customer support) logs into the Trustless Work dApp using the Dispute Resolver / Release Signer address assigned to the escrow.

📌 Reference:

• Trustless Work dApp (Backoffice)

• Login using the resolver wallet configured for the marketplace

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4. Platform Reviews the Case

Using:

• OfferHub-provided evidence (off-chain)

• On-chain escrow state

• Transaction history

The platform decides one of the following outcomes:

• Release funds to the seller

• Refund funds to the buyer

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5. Platform Signs the Resolution

Trustless Work dApp → Escrow:
  Execute Release OR Refund

This action:

• is signed by the platform’s resolver/release signer address,

• is enforced on-chain,

• is final.

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Post-Resolution State

After resolution:

• Escrow moves to Released or Refunded

• Order moves to Closed

• Funds are transferred accordingly

• Full audit trail exists (on-chain + off-chain)

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Outputs

• ✅ Dispute recorded

• ✅ Escrow frozen during review

• ✅ Resolution enforced on-chain

• ✅ Order closed with final outcome

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What Users See

Buyer

• Dispute status updates

• Final outcome (refund or not)

• Clear explanation from platform

Seller

• Dispute status updates

• Final outcome (paid or refunded)

• Platform decision explanation

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Security & Trust Model

• Buyers cannot release funds

• Sellers cannot release funds

• Platform can only act within escrow rules

• All resolution actions are signed and auditable

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Educational Notes

Why Both Parties Can Raise Disputes

This mirrors real marketplaces:

• disputes are signals, not decisions,

• raising a dispute does not imply wrongdoing,

• resolution is handled by customer support.