Protected Pay Dispute Process

Protected Pay provides a secure platform to manage Transactions for deliverables. When a dispute arises, it follows a structured, two-stage process that encourages direct negotiation between the Payor and the Payee.

Understanding the process and acting quickly is essential to resolving the issue and preventing the need for external arbitration.

Understanding the Protected Pay Process

Protected Pay Acceptance Period

This is the initial 14-day window following the Payment request. During this time, the Payor must review the delivery and take one of three actions:

• Release the Payment: The Payor confirms the conditions were met, and funds are released to the Payee's Wallet.
• Dispute the Payment: The Payor manually clicks the dispute button.
• Take No Action: Failure to act within the 14 days automatically triggers a dispute.

What Constitutes a Dispute?

A dispute occurs when the Payor believes the defined criteria were not met (goods/services were unsatisfactory) or when the Payor manually clicks the dispute button. Once a dispute is initiated (manually or automatically), the funds held by Micro Escrow™ enter the Negotiation Period.

Step-by-Step Instructions: The Dispute Resolution Process

Phase 1: The Negotiation Period (30 Days)

Once the Payment is disputed, a 30-day Negotiation Period begins. Both parties must work together to find a resolution.

1. Open Communication: Payor and Payee must promptly contact each other to discuss the issue. Resolution options may include:
   • Negotiating a partial Payment or discount.
   • Agreeing on additional revisions or work to meet original requirements.
   • Setting new delivery timelines.
2. Document the Agreement: Once a resolution is reached, both parties must notify LiquidTrust by emailing support@liquidtrust.io and provide full details of the agreed-upon resolution, requesting the appropriate release of escrowed funds.

Phase 2: Arbitration (If Negotiation Fails)

If no agreement is reached within the 30-day Negotiation Period, the Transaction is escalated to mandatory Arbitration as outlined in the Terms of Service.

• Both parties are required to enter Arbitration.
• Arbitration Fees: All fees will be the responsibility of the Payor and Payee.
  • If only one party pays its share of the fee within the specified timeframe, the arbitration proceeds, and the failure to pay may be submitted to the arbitrator for consideration (potentially resulting in a default ruling).
  • If neither the Payor nor the Payee pays their respective share within the specified timeframe, the dispute will be considered abandoned. LiquidTrust will then close the dispute and release the full amount of the funds back to the Payor's account.

LiquidTrust's Role in Protected Payments

It's important to understand the limits of LiquidTrust's involvement in a Protected Payment dispute:

Key Takeaways to Prevent and Resolve Disputes

To ensure a smooth transaction and resolution, remember to:

• Act promptly: The 14-day Acceptance Period moves quickly.
• Communicate openly: Most disputes can be resolved through direct negotiation.
• Document everything: Keep records of all communications and agreements.
• Know the timeline: You have 14 days for acceptance and 30 days for negotiation.
• Understand the process: Familiarize yourself with the full Terms of Service for complete legal definitions and processes.

For additional support, contact us at support@liquidtrust.io.