Arbitrator

An arbitrator resolves disputes that could not be resolved by traders on their own or with a mediator's help.

Arbitrators investigate disputes, just like mediators. But unlike mediators, whose suggestions encourage traders to make payouts from their own escrowed funds, an arbitrator's findings lead to a payout from the arbitrator themselves.

All trades placed from 1st January 2023 will use a new trade protocol that is designed to further improve the decentralization of Bisq. The new protocol is a result of the proposal Distribute Burningman role to contributors who burned BSQ which was vote on in Bisq DAO cycle 41 with 100% approval. The protocol change means trades placed from 1st January 2023 will have an important difference should the trade end in arbitration. This is as a result of the accepted proposal do not pay out the security deposit of the trade peer to the arbitration case winner. What this means in practice is IF a trade ends in arbitration the arbitrator will only payout the trade amount plus one users security deposit. Previously they paid out the trade amount plus both user's security deposits. Therefore, traders ending in arbitration will notice the following: The arbitration 'winner' will not be compensated for the inconvenience caused by the trade going to arbitration. The arbitration 'loser' will not be be refunded their deposit partially or in full. This chance is necessary for the security of the new protocol. Remember arbitration should be seen as the last resort. All efforts should be made for trader to come to an agreement with themselves or via the mediator.

Role Notes

Arbitrator's Role in Dispute Resolution

Currently, the arbitrator makes BTC payouts to aggrieved traders out of their own pocket and gets refunded by the Bisq DAO (hence the term refund agent used sometimes). But this arrangement is intended as a convenience so that traders can avoid making a reimbursement request to the DAO on their own.

The arbitrator role is one element of Bisq's decentralized dispute resolution process. Please see more details at arbitration.

Arbitrator versus Legacy Arbitrator

Although arbitrators have been a component of dispute resolution on Bisq since its early days, the v1.2 update wholly changed the nature of the role.

Before the update, trade funds were secured in a 2-of-3 multisig escrow, in which arbitrators held the third key. They would evaluate disputes and then sign funds to traders as they saw fit. Since these arbitrators (which we now refer to as legacy arbitrators) had some element of control over users' funds, those who filled the role had to be very highly trusted.

The v1.2 update enabled trade funds to be secured in a 2-of-2 multisig escrow, in which arbitrators have no involvement. Mediators handle most disputes, but if an arbitrator does get involved, payouts either come from the arbitrator's own pocket or from the Bisq DAO. Arbitrators are still trusted to conduct their role with integrity and consistency, but this is a wholly different kind of trust, one that is unrelated to the handling of users' funds, and thus one that doesn't even require a bond.

Issue

https://github.com/bisq-network/roles/issues/93

Team

@bisq-network/refund-agents

Duties

• Investigate trader disputes and determine how payout should be made (must respond to traders within 5 days)
• Do payouts to traders as appropriate with BTC
• Request BSQ reimbursement from the Bisq DAO

Rights

• Write access to the Support - Private Matrix room

Bonding

Not required.