<p></p>
<p><a class="user-mention" data-hovercard-type="user" data-hovercard-url="/users/sqrrm/hovercard" data-octo-click="hovercard-link-click" data-octo-dimensions="link_type:self" href="https://github.com/sqrrm">@sqrrm</a> as both <a class="user-mention" data-hovercard-type="user" data-hovercard-url="/users/MwithM/hovercard" data-octo-click="hovercard-link-click" data-octo-dimensions="link_type:self" href="https://github.com/MwithM">@MwithM</a> and <a class="user-mention" data-hovercard-type="user" data-hovercard-url="/users/clearwater-trust/hovercard" data-octo-click="hovercard-link-click" data-octo-dimensions="link_type:self" href="https://github.com/clearwater-trust">@clearwater-trust</a> mentioned above, the Third Trust Party never left and in the new protocol it was what led to the recent exploit. As of today <a class="user-mention" data-hovercard-type="user" data-hovercard-url="/users/burningman2/hovercard" data-octo-click="hovercard-link-click" data-octo-dimensions="link_type:self" href="https://github.com/burningman2">@burningman2</a> can take all offers and just sit and wait for the funds to be sent to their address.</p>
<p><a class="user-mention" data-hovercard-type="user" data-hovercard-url="/users/MwithM/hovercard" data-octo-click="hovercard-link-click" data-octo-dimensions="link_type:self" href="https://github.com/MwithM">@MwithM</a> you make a great point regarding the redundancy flaw in my suggestion. I don't know much about SSSS but given that 3of5 of the arbitrators can decrypt the transactions then that's the better way.</p>
<ol>
<li>Regarding workflow. Given that we won't abolish the Mediator role, I think that they should approach the traders and come up with a solution then. If one of the traders is clearly at fault the mediator can then present the case to the arbitrator and point them to the correct payout.</li>
<li>I don't see any downsides to keep the current security deposit model. What do you have in mind?</li>
<li>I agree with you.</li>
<li>I hadn't thought of that. It seems fair, the mediators time is valuable and I'm all for punishing traders if they go against trade protocol.</li>
</ol>

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