Arbitration System: $COTI provides decentralized payment options for merchants

Decentralized authority, safety, and dependability are the three primary goals of the Arbitration System. In the event of a dispute arising within the network, it is the responsibility of arbitrators to resolve the issue and protect buyers and sellers from any potential mistakes, fraud, or abuse from their counterparties. While the Trust Score instills confidence in all COTI Pay network transactions and discourages dishonest or unfair conduct, the Arbitration System provides a second mechanism for resolving disputes in a timely and cost-effective manner.  The following are examples of common disputes that typically end up in arbitration: 

• Errors in billing: The transaction is completed successfully, but the buyer discovers at a later time that the amount paid for the goods or services was incorrect. 

• Unintentional transfers: occur when a user sends money to the incorrect recipient by accident. 

• Unauthorized charges: occur when a monetary amount is deducted from the user's account even though the user did not give permission for the transaction to take place. 

• Unfulfilled purchases: occur when a customer makes a purchase from a business but does not receive the ordered product or service. 

• Nonconforming goods or services: The buyer pays for and receives the goods or services, but they do not conform to the description or standards communicated by the seller at the time of sale. 

In any of the situations described above, if the person who sent the funds and the person who received them are unable to settle the dispute between them directly, either party may submit the matter to arbitration.

The rolling reserve requirements are determined by taking the merchant's turnover and Trust Score into consideration. Rolling reserve requirements in COTI Pay are significantly lower than those of conventional payment systems because of the network's architecture, Arbitration System, and decentralization. A merchant reserve fee that rolls over over a set period of days will be applied to each purchase. When the rolling reserve period ends, the funds are returned to the merchant's account. The rolling reserve is used when a merchant loses a dispute and has to pay the customer back.  If a merchant does not meet the rolling reserve requirements, they will lose the ability to sell goods and services through the COTI Pay network.