Dispute Resolution
Most trades complete smoothly. But when they don't, LocalUSDT provides a fair, transparent dispute process backed by non-custodial escrow. Neither the platform nor the arbitrator can take the funds — they can only direct them to the rightful party.
When Should You Open a Dispute?
As a Buyer
- • You sent payment but the seller won't release escrow
- • The seller is unresponsive for an extended period
- • The payment deadline has passed without resolution
As a Seller
- • The buyer claims they sent payment but you haven't received it
- • The payment proof looks manipulated or doesn't match
- • The buyer sent the wrong amount
How the Dispute Process Works
Either party opens a dispute
You provide a reason (minimum 10 characters) explaining the issue. The trade status changes to "Disputed" and the escrow is frozen.
An arbitrator is assigned
A neutral third-party arbitrator reviews the case. To enable investigation, the disputing party shares the trade's encryption key so the arbitrator can read the encrypted conversation.
Evidence is reviewed
The arbitrator examines chat messages, payment proof, Trade Shield analysis results, and any additional evidence. If you used Trade Shield Advanced, the dispute evidence summarizer automatically compiles a structured report.
Resolution
The arbitrator directs the escrowed USDT to either the buyer or the seller. This is enforced by the smart contract — the arbitrator can never take the funds for themselves. The platform cannot override this decision.
How to Present Strong Evidence
- 1.Upload clear, unedited screenshots. Crop is fine, but never modify the content. Edited screenshots will be flagged by Trade Shield.
- 2.Include full transaction details. Reference numbers, timestamps, sender/receiver names, and amounts should all be visible.
- 3.Use Trade Shield. Run both Basic and Advanced analysis on your payment proof. The automated confidence checklist carries weight in disputes.
- 4.Communicate through the trade chat. Encrypted messages are the official record. Agreements made outside the platform are harder to verify.
- 5.Respond promptly. If an arbitrator asks for additional information, provide it quickly. Unresponsive parties are at a disadvantage.
The Escrow Guarantee
Throughout the dispute process, the escrowed USDT remains in the smart contract. This is non-negotiable and enforced by code, not trust:
- • LocalUSDT cannot withdraw from escrow under any circumstances
- • The arbitrator can only direct funds to the buyer or seller — never to themselves
- • The smart contract is open source and publicly verifiable on-chain
- • No one can freeze or seize the escrowed funds outside the defined rules
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