Protected Pay Dispute Process

Protected Pay provides a fair and transparent way to resolve disagreements between the Payor and Payee.

If a payment is disputed, it follows a two-step process designed to encourage direct resolution before arbitration becomes necessary.

Acceptance Period

Once the Payee requests the payment release, the Payor has 14 days (the Acceptance Period) to agree to release the funds or file a Dispute. Taking no action at the end of the 14 days will automatically trigger a Dispute.  

Understanding Disputes

A dispute occurs when the Payor believes the agreed deliverables were not met — for example, incomplete work, missing documentation, or quality issues. Or, by simply not responding to the payment release request during the acceptance period.

Once a dispute is opened, the funds held in Micro Escrow™ are temporarily locked until both parties resolve the issue or the case moves to arbitration.

The Two-Step Resolution Process

Step 1: Negotiation Period (30 Days)

Once a payment is disputed, a 30-day Negotiation Period begins.

During this time:

• Payor and Payee communicate directly to resolve the issue.

  Examples: partial payment, added revisions, or new delivery dates.

• Once an agreement is reached, both parties email support@liquidtrust.io with the details so LiquidTrust can release or refund the funds.

If both parties do not reach an agreement within 30 days, the dispute moves to Step 2.

Step 2: Arbitration

If negotiation fails, the case enters Arbitration as defined in the Terms of Service.

• Both parties must participate and pay their share of arbitration fees.
• If one side fails to pay, the arbitration may proceed and result in a default decision.
• If neither side pays, the case is closed and funds return to the Payor.

Key Timelines

• Acceptance Period: 14 days for the Payor to release, dispute, or take action.
• Negotiation Period: 30 days to resolve directly before arbitration.

LiquidTrust’s Role

LiquidTrust provides the platform to hold and release funds securely but does not act as an escrow agent or decide dispute outcomes.

Tips to Avoid Disputes

• Act quickly: Review deliverables and respond within the 14-day Acceptance Period.
• Communicate early: Most issues resolve before arbitration.
• Keep records: Save contracts, messages, and evidence of delivery.
• Understand timelines: 14 days for acceptance, 30 days for negotiation.

For questions or support, contact support@liquidtrust.io.