VDEX
  • overview
    • Introduction
    • What is VDEX?
    • Core Features
      • Omnichain Trading
      • Full Self-Custody
      • Sustainable BTC Yield
      • ZeroGas Transactions
      • Sub-Millisecond Finality
      • No KYC, No VPN Restrictions
  • Trade
    • Platform
      • Getting Started
      • Platform Navigation
      • Deposit and Withdraw
      • Supported Collateral
      • Pairs
      • Finality Time
      • Perps
      • Orders
      • CLOB
      • Margin
      • Leverage
      • Liquidations
      • Fee Schedule
      • Gas Fees
      • Funding Rate
      • Insurance Fund
    • Access
      • Chain Abstraction
      • No VPN, No KYC
    • Beta
    • Market Making
    • Security
      • VDEX Fund Protection
      • Dispute Resolution Mechanism
      • Oracle and Collusion Safeguards
  • Yield
    • Virtual Market Maker
    • Volatile Asset Collateral
    • Fund Strategy
  • Ecosytem
    • Overdrive
      • Overdrive: The Ultimate Trading Advantage
        • Activating Overdrive
        • Key Participants
      • Market Makers-Overdrive
      • Traders-Overdrive
    • Bug Bounty Program
    • Bug Reporting Guidelines
    • Contact & Support Channels
    • FAQ
    • Whitepaper
    • Definition of Terms
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On this page
  • 1. Decentralized Arbitration
  • 2. Community Voting Mechanism
  • 3. Dual-Sided Evidence Submission
  • 4. Escrow Mechanism
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  1. Trade
  2. Security

Dispute Resolution Mechanism

Disputes can arise in any trading environment. VDEX’s decentralized nature offers a unique, transparent, and fair approach to resolution. There are 5 different ways a dispute can be resolved.

1. Decentralized Arbitration

Disputes are resolved through an unbiased and decentralized arbitration process powered by smart contracts.

  • Transparent Rules: Predefined conditions in smart contracts govern dispute resolution.

  • No Human Bias: Automated processes ensure impartial outcomes.

2. Community Voting Mechanism

In complex disputes, the VDEX community plays a role in resolution.

  • Staking-Based Participation: Community members stake tokens to participate in dispute resolution, incentivizing fair judgment.

  • Reputation System: Participants with a history of fair decisions are rewarded, while malicious actors lose credibility.

3. Dual-Sided Evidence Submission

Both parties in a dispute submit evidence to a smart contract:

  • Immutable Records: All submissions are recorded on-chain, ensuring transparency.

  • Automated Evaluation: Algorithms evaluate evidence to determine a resolution.

4. Escrow Mechanism

Funds involved in disputed transactions are held in escrow until resolution:

  • Neutral Holding: Prevents premature fund release or misuse.

  • Timely Resolution: Disputes are resolved within defined timeframes to minimize delays

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Last updated 8 days ago