Dispute Policy

IW
Last updated 5 months ago

Details on how the escrow system works during a dispute process.

How CoinSparrow's Escrow System Works

1) A Buyer and a Sparrow (seller / service provider) agree to a price in ETH for the service to be provided.

2) The Sparrow initiates a custom contract at that price and send it to the Buyer.

3) The buyer funds the smart contract (escrow account) with the agreed price. The funds are stored safely in the contract while the Sparrow executes the service promised.

4) The Sparrow delivers proof of services rendered, and if the buyer is satisfied, they then confirm the transactions success, which releases the escrow fund to the Sparrow.

4.1) Should the Sparrow not deliver in a timely manner, or the Sparrow doesn't deliver the service as promised, or the Buyer refuses to release the funds for any reason, then either party can initiate a dispute. Raising a dispute will automatically bring in a 3rd party Arbitrator from CoinSparrow.

Role of the Arbitrator

CoinSparrow has no access to the funds in escrow unless a dispute is initiated, in which we will use the following criteria to decide if the funds are released back to the Buyer or on to the Sparrow.

a) Arbitrator only has access to the funds for that particular job, and can only transfer those funds to the Sparrow/Customer. The funds can't be transferred to some arbitrary address, for example.

b) Arbitrator can also split the funds, and decide which party gets what percentage - so it can be a 60/40 Sparrow/Customer split, if necessary, as opposed to all funds going to either Sparrow or Customer

Arbitrator Review Process

1) Was the goods / services performed and delivered as promised?

If yes, then we will always side with the Sparrow.

2) Were the goods / services delivered as described, however the quality is not to the standard of the buyer?

Funds will be released back to the Buyer.

3) Were the goods / services different than described and the buyer refuses delivery?

Funds will be released back to the Buyer.

4) Were the goods / services different than described, however the buyer acknowledged this and accepted delivery?

The funds will be released to the Sparrow.

Beyond those 4 criteria, there are always many gray areas in which we will examine intent, circumstances and reputation and attempt to come to a fair decision for all involved.