Dispute Resolution

Explore how Lucid manages disputes by securely holding funds while parties resolve disagreements through mutual agreement, mediation, or legal determination.

While escrow transactions are designed to minimize risk, disputes may occasionally arise when parties disagree about whether transaction conditions have been satisfied.

Lucid provides a structured dispute resolution framework to ensure that funds remain secure while parties work toward a resolution.

Neutral Position

Lucid acts as a neutral escrow holder and does not determine which party is correct in a contractual disagreement.

Instead, Lucid ensures that:

  • Funds remain securely held
  • No party can unilaterally access escrow funds
  • Release occurs only when resolution conditions are met

When Disputes Occur

Common reasons for disputes may include:

  • Delivery issues
  • Product quality disagreements
  • Milestone completion disputes
  • Contractual interpretation differences

When a dispute is raised, the transaction is placed under review.

Resolution Pathways

Disputes may be resolved through one of the following methods:

  • Mutual Agreement: Both parties may agree in writing on how funds should be released.
  • Third-Party Mediation: Parties may choose to involve an independent mediator or arbitrator.
  • Legal Determination: A court order or legal ruling may determine the outcome of the transaction.

Lucid releases funds only after receiving appropriate instructions or documentation.

Protecting Both Parties

Throughout the dispute process:

  • Funds remain secure in escrow
  • Transaction records remain accessible
  • Neither party can withdraw funds without authorisation

This framework ensures fairness while protecting all participants.