[bisq-network/proposals] Applying arbitration fee (#335)

pazza notifications at github.com
Sun May 16 02:26:01 CEST 2021


Thanks @refund-agent2 for answering my concerns.

> Traders who need arbitration don't pay the arbitration fee, which is paid by those who aren't using it by not responding. More than 80% of arbitration cases at last cycle were caused by unresponsive traders. That has a remarkable cost for Bisq and increases the risk that Burningman role supposes for the DAO.

Indirectly the traders entering arbitration would pay for it by receiving a lessor amount in compensation. I still think the costs of arbitration should be covered by trade fees in the same way everything else is. The extra amount could then be allocated to an insurance amount in the same way you propose above.

Also I think that if going down the route of having unresponsive traders pay arbitration fees, it does not make sense not to expand this out to other users making unsuccessful arbitration cases.

- Traders trading with incorrect bank details
- Traders not making payment in time
- Traders paying partial amounts 
- Traders using BTC as reference 

Basically anyone that has been penalized by the mediator and then does not accept mediation, and then subsequently fails to prove their case to the arbitrator.

> The arbitration fee will be calculated by substracting a % of the security deposit from the protocol violator, as in the next table:

Also the way the arbitration fee is proposed means that users choosing to trade with larger security deposits would be impacted more than those choosing to trade with smaller security deposits. I would suggest a percentage of the trade amount would be fairer.  But still not as fair as including arbitration costs in trade fees.


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