# Dispute Lifecycle Source: https://docs.justly.one/how-it-works/dispute-lifecycle Every dispute in Justly follows a compact five-state lifecycle with bounded deadlines, frozen evidence before voting, and finality independent from callback execution. Every dispute in Justly follows a deterministic five-state lifecycle. While tiers may change economic values and timing ranges, the state machine stays the same across the protocol. *** #### State model Every dispute moves through these states: 1. `Created` 2. `Evidence` 3. `Commit` 4. `Reveal` 5. `Finished` This model stays intentionally compact. Operational steps such as juror assignment happen inside a state rather than as separate states. *** #### 1. `Created` A dispute starts in `Created` when the integrating protocol opens a case between a **Claimer** and a **Defender**. At creation time: * the parties are defined, * the tier is selected, * the evidence reference can be set, * and timing parameters are initialized. The dispute exists, but adjudication has not started yet. *** #### 2. Funding and activation Both sides of the dispute must be fully funded before the dispute can activate. This means the required economic amounts for the claimer side and defender side must be covered. Those amounts may be paid by the parties themselves or by a sponsor or platform on their behalf. Until both sides are covered, the dispute remains in `Created`. Once full funding is complete, the dispute moves to `Evidence`. *** #### 3. `Evidence` In `Evidence`, the funded dispute is open for evidence submission. During this phase: * the parties can submit evidence references, * evidence stays off-chain, * evidence references are recorded on-chain, * and the record that jurors will later evaluate is formed. Evidence is only accepted during its allowed window. When the evidence window closes, the dispute moves to `Commit` and the record is frozen. *** #### 4. `Commit` `Commit` is the start of adjudication. At this point: * evidence is frozen, * the voting timer starts, * juror assignment begins, * and selected jurors can submit vote commitments. Juror selection is permissionless to trigger. If the full target panel is not reached before the selection timeout, the dispute still proceeds with the jurors actually selected. *** #### 5. `Reveal` In `Reveal`, jurors who committed votes reveal them. This phase: * verifies commitments, * counts valid reveals, * and allows the dispute to reach finalization. The dispute finalizes when either: * all effective votes have been revealed, or * the voting deadline passes. If no effective vote exists, the defender is the default outcome. *** #### 6. `Finished` In `Finished`, the ruling is final at the protocol level. At finalization, Justly: * stores the final ruling, * computes juror rewards and penalties, * and may attempt a callback to the integrating protocol. Callback success is not required for ruling finality. *** #### Key guarantees The lifecycle guarantees that: * a dispute cannot enter adjudication before both sides are fully funded, * evidence is frozen before voting begins, * progression is bounded by deadlines, * a dispute can finalize with fewer jurors than the target panel, * and callback failure does not invalidate the ruling. *** #### Notes on versions The current live version resolves disputes in a single finalized round. Appeals are planned for a later version and are not part of the current lifecycle. # Adversarial Dispute Source: https://docs.justly.one/how-it-works/dispute-types/adversarial-dispute Adversarial disputes are Justly's live dispute type for resolving binary conflicts between two opposing parties. An **adversarial dispute** resolves a conflict between two opposing parties through neutral human judgment and on-chain execution. It is the primary dispute type supported in the current version of Justly. *** ### Overview An adversarial dispute involves: * a **Claimer**, who initiates the case, * a **Defender**, who responds to it, * and a panel of jurors who evaluate the evidence. Both sides of the dispute must be fully funded before adjudication starts. Those amounts may be paid by the parties themselves or by a sponsor or platform on their behalf. Jurors evaluate the record and produce a binary outcome. If no effective vote exists at finalization, the defender is the default outcome. *** ### When to use an adversarial dispute Adversarial disputes are suitable when: * responsibility or fault is contested, * the outcome is binary, * and a clear winner must be determined. Typical use cases include: * marketplaces and peer-to-peer transactions, * freelancer and contractor platforms, * fintech and payment disputes, * and protocol-level human arbitration. *** ### Participants #### Claimer The claimer is the party that initiates the dispute. The claimer is responsible for: * opening the dispute, * submitting evidence during the evidence window, * and ensuring the claimer side of the dispute is funded. *** #### Defender The defender is the party responding to the claim. The defender is responsible for: * submitting counter-evidence during the evidence window, * and ensuring the defender side of the dispute is funded. *** #### Jurors Jurors are independent participants selected through protocol-defined assignment. Jurors: * review the evidence, * commit and reveal votes, * and are economically incentivized to vote coherently. Jurors are never parties to the dispute. *** ### Dispute flow 1. The dispute is created in `Created`. 2. Both sides are fully funded. 3. The dispute moves to `Evidence` and evidence can be submitted. 4. Evidence closes and the dispute moves to `Commit`. 5. Juror assignment begins and selected jurors commit votes. 6. The dispute moves to `Reveal` and jurors reveal votes. 7. The dispute finalizes in `Finished`. All steps follow predefined rules enforced by smart contracts. *** ### Appeals The current live version resolves adversarial disputes in a single finalized round. Appeals are planned for a later version and are not part of the current implementation. *** ### Guarantees Adversarial disputes in Justly provide: * **Neutrality**: jurors are independent and randomly assigned. * **Economic alignment**: incentives reward coherent voting and penalize incoherence. * **Deterministic execution**: outcomes are enforced by smart contracts. * **Predictable structure**: all rules are defined upfront by the protocol. Justly does not interpret evidence, influence jurors, or intervene in outcomes. *** ### Status **Live (Current Implementation)** # Decision Dispute Source: https://docs.justly.one/how-it-works/dispute-types/decision-dispute Not all judgments involve a conflict between two opposing parties. Not all judgments involve a conflict between two opposing parties. Some situations require a **collective human decision** to validate whether an action, proposal, or outcome should be accepted or rejected. **Decision disputes** are designed for these cases. *** ### Overview A decision dispute enables **structured collective judgment** over a proposal or action. Instead of resolving a conflict between two parties, jurors evaluate whether a submitted proposal is **valid, acceptable, and well-defined** according to predefined rules. The outcome is enforced automatically on-chain. *** ### When to use a Decision Dispute Decision disputes are suitable when: * no direct adversarial conflict exists, * a proposal must be validated by human judgment, * or automated rules are insufficient or ambiguous. Typical use cases include: * governance and protocol decisions, * validation of sensitive actions, * structured approval workflows, * human review of edge cases. *** ### Participants #### Proposer The proposer submits a proposal, action, or decision for evaluation. The proposer: * defines the proposal to be evaluated, * deposits a **bond**, * and accepts the outcome determined by jurors. The proposer is **never a juror** in their own decision dispute. *** #### Jurors Independent participants selected through randomized assignment. Jurors: * evaluate the proposal according to the dispute rules, * vote independently, * and are economically incentivized to act coherently. Jurors are not influenced by the proposer and have no special privileges. *** ### Decision Outcomes Decision disputes produce one of the following outcomes: #### Accept The proposal is considered valid and acceptable. The protocol executes the accepted action or records the decision accordingly. *** #### Reject The proposal is considered invalid, poorly defined, or unsuitable for evaluation. Reject does **not** mean: > “refund the proposer” Reject means: > “the proposal should not be accepted in its current form.” In this case, the proposer’s bond is used to: * compensate jurors, * and cover protocol costs. This mechanism discourages biased, low-quality, or malformed proposals without giving proposers special influence. *** ### Bond Mechanism The proposer deposits a bond when opening a decision dispute. The bond serves to: * discourage spam or biased proposals, * align incentives between proposers and jurors, * and compensate jurors in case of rejection. If: * no clear majority is reached, * or a rejection threshold is met, the bond may be redistributed according to the dispute rules. *** ### Dispute Flow (High Level) 1. The proposer submits a proposal and deposits a bond. 2. Jurors are assigned to the dispute. 3. Jurors evaluate the proposal and vote. 4. The protocol determines the outcome. 5. The result is executed automatically on-chain. All steps follow predefined rules enforced by smart contracts. *** ### Guarantees Decision disputes in Justly provide: * **Impartial evaluation**: proposers do not influence voting. * **Economic discipline**: bonds discourage malformed proposals. * **Transparent execution**: outcomes are enforced on-chain. * **Predictable structure**: decision rules are defined upfront. Justly does not interpret proposals or intervene in decisions. *** ### Status **Planned** Decision disputes are part of the core protocol design and will be introduced in a future implementation phase. # Dispute Types Source: https://docs.justly.one/how-it-works/dispute-types/dispute-types Justly supports multiple types of human judgment, depending on the nature of the conflict or evaluation being performed. Justly supports multiple types of human judgment, depending on the nature of the conflict or evaluation being performed. Each dispute type defines: * how participants interact, * how jurors evaluate information, * and how outcomes are enforced on-chain. Not all dispute types are available in the current implementation.\ This section describes the live dispute type and the additional dispute types planned for later versions. | Types | Purpose | Outcome | Status | | ------------------- | --------------------------------------- | ------------------ | ------------- | | Adversarial Dispute | *Resolve conflicts between two parties* | *Winner/Loser* | Live | | Decision Dispute | *Validate proposals or decisions* | *Accept/Reject* | Later version | | Rating Evaluation | *Evaluate quality or contribution* | *Aggregated Score* | Later version | ### Adversarial Dispute **Status:** Live (Current Implementation) Resolves conflicts between two opposing parties: a **Claimer** and a **Defender**. Jurors evaluate evidence submitted by both sides and vote on a binding outcome that is enforced on-chain. Used for: * marketplaces, * freelancer and contractor platforms, * fintech and payment disputes, * peer-to-peer conflicts. → *See: Adversarial Dispute* *** ### Decision Dispute **Status:** Later version Designed for collective decision-making rather than conflict resolution. Jurors evaluate whether a proposal or action should be accepted or rejected according to predefined rules. Used for: * governance processes, * protocol-level decisions, * structured human validation. → *See: Decision Dispute* *** ### Rating Evaluation **Status:** Later version A collective evaluation mechanism based on structured numerical input rather than binary outcomes. Jurors provide ratings that are aggregated to measure quality, performance, or contribution. Used for: * open-source contribution evaluation, * content moderation, * quality and performance scoring, * reputation systems. → *See: Rating Evaluation* Some dispute types may support additional evaluation rounds under stricter conditions. *** ### Extensibility Justly is designed as a modular protocol. Additional dispute types and variations can be introduced over time without changing the core execution or incentive model. # Rating Evaluation Source: https://docs.justly.one/how-it-works/dispute-types/rating-evaluation Not all judgments are about determining a winner. Not all judgments are about determining a winner. Some problems require **measuring quality, performance, or contribution** rather than resolving a conflict. **Rating Evaluation** is Justly’s primitive for these cases: a structured, incentive-aligned system for collective human evaluation. *** ### Overview Rating Evaluation enables **collective assessment using numerical input**, rather than binary outcomes. Instead of voting for a winning party, jurors provide **ratings on a predefined scale** (for example, 1-5).\ These ratings are aggregated using robust statistical methods to produce a final evaluation. The result is enforced or recorded automatically on-chain. Rating Evaluation is designed to support **subjective or qualitative judgment** while preserving incentive alignment and resistance to manipulation. *** ### When to use Rating Evaluation Rating Evaluation is suitable when: * there is no clear winner or loser, * quality or contribution must be assessed, * or outcomes exist on a spectrum rather than as binary choices. Typical use cases include: * open-source contribution evaluation and reward distribution, * content moderation and severity assessment, * marketplace quality scoring, * performance and deliverable evaluation, * reputation and feedback systems. *** ### Participants #### Subject The subject is the entity being evaluated. This may be: * a contribution, * a piece of content, * a deliverable, * or a completed action. The subject does not participate in voting. *** #### Jurors Independent participants selected through randomized assignment. Jurors: * review the submitted evidence, * assign ratings according to the defined scale, * and are economically incentivized to rate coherently. Jurors do not coordinate directly and have no privileged information. *** ### Evaluation Method Jurors submit ratings on a predefined numerical scale. The protocol aggregates these ratings using a **median-based approach**, which: * reduces sensitivity to outliers, * penalizes extreme or incoherent inputs, * and provides robustness against individual manipulation. Incentives are adjusted based on **distance from the aggregated result**, rather than absolute correctness. This creates a system where jurors are rewarded for **coherent judgment**, not for guessing an objective “truth”. *** ### Incentive Design Rating Evaluation uses **partial incentive adjustment** rather than full slashing. Jurors whose ratings are closer to the aggregated result retain more of their stake.\ Jurors whose ratings deviate significantly may lose a portion of it. This design: * discourages extreme or bad-faith ratings, * tolerates reasonable disagreement, * and avoids punishing minor deviations harshly. *** ### Generalization Across Domains Rating Evaluation is designed as a **general evaluation engine**, not a domain-specific tool. The protocol separates: * the **rating engine** (aggregation and incentive logic), * from the **evidence schema** (what is being evaluated and how). This allows the same evaluation mechanism to be reused across multiple verticals, with domain-specific evidence formats defined at the integration layer. *** ### Dispute Flow (High Level) 1. An evaluation request is created. 2. Evidence related to the subject is submitted. 3. Jurors are assigned to the evaluation. 4. Jurors submit numerical ratings. 5. Ratings are aggregated and incentives adjusted. 6. The final evaluation is recorded or executed on-chain. All steps follow predefined rules enforced by smart contracts. *** ### Guarantees Rating Evaluation in Justly provides: * **Robust aggregation**: resistance to outliers through median-based methods. * **Incentive alignment**: partial slashing discourages manipulation. * **Flexibility**: applicable across multiple evaluation domains. * **Deterministic execution**: results enforced or recorded on-chain. Justly does not define what “quality” means; it enforces how collective judgment is aggregated and incentivized. #### Reward Calculation To ensure the system is both fair and resistant to manipulation, Justly utilizes a linear loss function based on distance. Each juror's reward multiplier is determined by comparing their individual rating to the final aggregated result (the median). The applied formula is: $$ S\_i = 1 - \left( \frac{|r\_i - \tilde{x}|}{D\_{max}} \right) $$ Where: * $S\_i$: Juror’s reward score (between 0 and 1). * $|r\_i - \tilde{x}|$: The absolute distance between the juror’s rating and the median. * $D\_{max}$: The maximum possible distance within the scale (e.g., 4 on a 1-5 scale). **Why this design?** This incentive mechanism was selected for two fundamental reasons: 1. Fairness for Subjective Judgment: Unlike binary dispute resolution systems - where a minor deviation can lead to a total loss of stake - this formula recognizes that quality assessment is nuanced. If the majority rates a deliverable as a 4 and you rate it as a 3, the system does not treat you as a malicious actor, but as an evaluator with a slightly different perspective. You receive a partial reward (75% on a 1-5 scale) rather than being severely penalized. 2. Resistance to Collusion and Outliers: By using the median as the system's anchor, the protocol remains extremely robust. Jurors are economically incentivized to seek the "honest consensus," as moving away from what the majority perceives as reasonable results in a proportional financial loss. This compels jurors to be diligent: the more erratic or extreme their rating is relative to the collective judgment, the lower their profit will be. *** ### Status **Planned** Rating Evaluation is part of the core protocol design and will be introduced in a future implementation phase. # Jurors Source: https://docs.justly.one/how-it-works/jurors Jurors are independent human participants responsible for resolving disputes in Justly. Jurors are independent human participants responsible for resolving disputes in Justly. They act as neutral decision-makers, evaluating evidence and casting votes according to their honest judgment.\ The protocol is designed so that jurors are economically incentivized to vote coherently and independently. *** #### Who Can Be a Juror Any eligible participant who meets the protocol’s requirements may act as a juror. Jurors: * can be gated by identity and anti-Sybil mechanisms depending on deployment profile, * participate anonymously with respect to the disputing parties, * and must actively opt in to each dispute they join. Jurors cannot participate in disputes in which they are directly involved. *** #### Role and Responsibilities Jurors are responsible for: * reviewing the evidence submitted by both parties, * applying their own judgment based on the dispute context, * and submitting a vote within the defined voting phases. Jurors do not communicate with each other during the dispute and have no visibility into other jurors’ votes until the process concludes. *** #### Stakes and Economic Exposure To participate in a dispute, jurors are required to deposit a stake defined by the selected tier. This stake: * represents economic exposure to the outcome, * aligns juror incentives with honest participation, * and discourages low-effort or malicious behavior. Staking defines economic exposure and reinforces honest participation. *** #### Rewards and Penalties Jurors who vote coherently with the final outcome are rewarded. Jurors who vote against the final outcome lose part or all of their stake, depending on the dispute type and tier. This reward and penalty structure: * reinforces honest decision-making, * penalizes random or adversarial voting, * and ensures long-term incentive alignment within the juror pool. *** #### Independence and Neutrality Jurors are selected independently and randomly. The protocol ensures that: * disputing parties cannot choose their jurors, * jurors cannot influence assignment or outcomes, * and all economic flows are enforced automatically by smart contracts. Jurors do not have discretionary power beyond their individual vote. *** #### Jurors in the Ecosystem Jurors are a core component of the Justly ecosystem. By participating in disputes, jurors: * help maintain trust in digital platforms, * contribute to fair and transparent outcomes, * and earn rewards by providing honest human judgment. The protocol is designed to scale the juror pool over time while preserving neutrality, reliability, and economic incentives. # Dispute Tiers Source: https://docs.justly.one/how-it-works/tiers/dispute-tiers Each tier defines the juror panel target, juror stake levels, and dispute-side funding amounts exposed to integrators. Each tier defines a dispute profile with a specific balance of **security level**, **economic cost**, and **resolution speed**. | Tier | Jurors | Stake per Juror | Stake per Party (Claimer / Defender) | Fixed Fee\* | Security Level | | ---------- | -------- | --------------- | ------------------------------------ | ----------- | -------------- | | **Tier 1** | 3 jurors | 1 USD | 4 USD | 3 USD | Low | | **Tier 2** | 5 jurors | 5 USD | 10 USD | 5 USD | Medium | | **Tier 3** | 7 jurors | 10 USD | 17 USD | 7 USD | High | | **Tier 4** | 9 jurors | 20 USD | 29 USD | 9 USD | Very High | \* **Fixed Fee:** a fixed amount distributed among jurors who vote coherently. This fee is taken from the stake deposited by the parties involved in the dispute. *** #### Important notes * All values are expressed in USD, or equivalent stablecoins. * Both sides of the dispute must be fully funded before the dispute activates. * Tier values are the public-facing profiles exposed to platforms and integrators. * Internal protocol configuration may still map these tiers to court or category settings while preserving the same economics. * Higher tiers increase the cost of attacks, the diversity of judgment, and the overall robustness of the outcome. * Selecting a tier allows a platform to choose a security level proportional to the value or complexity of the dispute. # What is a Tier Source: https://docs.justly.one/how-it-works/tiers/what-is-a-tier A tier is the public-facing dispute profile that packages juror stakes, arbitration fees, and panel size for platforms integrating Justly. A **tier** is the public-facing dispute profile for a Justly case. It defines the **security level, cost, and robustness** of a dispute. It packages the main values a platform or integrator cares about, such as: * how many jurors are targeted, * how much jurors stake, * and the arbitration fee amounts required for each side of the dispute. Tiers allow the protocol to adapt to different types of conflicts by balancing: * resolution speed, * required level of trust, * and the economic risk assumed by the parties and jurors. Each dispute is executed within a specific tier, and all rules of the resolution process are determined by that tier. *** ### What changes between tiers #### 1. Number of jurors Each tier defines how many human jurors are targeted for a dispute. * Lower tiers use fewer jurors, enabling faster and lower-cost resolutions. * Higher tiers use more jurors, increasing diversity of judgment and reducing the likelihood of biased outcomes. A higher number of jurors increases the robustness of the result against individual errors or adversarial behavior. *** #### 2. Stakes and fees Tiers establish the economic values for: * juror stakes, * the claimer-side funding requirement, * and the defender-side funding requirement. Each side must be fully funded before the dispute activates. Higher values: * increase the cost of malicious behavior, * raise the economic commitment of participants, * and better align incentives when the value or complexity of the dispute is higher. *** #### 3. Security level The security level of a dispute increases as the tier becomes higher. This is driven by the combination of: * a larger number of jurors, * higher economic stakes, * and a greater total cost required to manipulate the outcome. Together, these factors make higher tiers more suitable for: * higher-value disputes, * more complex cases, * or situations where an additional level of confidence is required. *** ### Tier system design Tiers do not exist to segment users, but to **offer security options proportional to the risk of a given conflict**. For integrators, tiers are the main abstraction exposed through the SDK or API. * tiers are **fixed and predefined by the protocol**, * all disputes within the same tier follow exactly the same rules, * and outcomes are executed automatically and verifiably on-chain. This design ensures predictable behavior for both individual users and platforms integrating Justly. # Which tier should I choose? Source: https://docs.justly.one/how-it-works/tiers/which-tier-should-i-choose Tier 1 Suitable for low value or simple disputes where speed and cost efficiency are the main priorities. Tier 2 Recommended for standard disputes invo * **Tier 1**\ Suitable for low-value or simple disputes where speed and cost efficiency are the main priorities. * **Tier 2**\ Recommended for standard disputes involving moderate value or complexity. * **Tier 3**\ Designed for higher-value disputes or cases where stronger guarantees and broader juror consensus are required. * **Tier 4**\ Best suited for complex or high-stakes disputes where maximum robustness and security are needed. # Voting and Incentives Source: https://docs.justly.one/how-it-works/voting-and-incentives Justly uses commit-reveal voting and tier-defined incentives to align honest human judgment with economic outcomes. This section describes how voting and economic incentives operate in practice within Justly.\ For the theoretical rationale behind these mechanisms, see Security & Game Theory. Justly uses an incentive-driven voting system designed to align honest human judgment with economic outcomes. The protocol does not attempt to determine truth algorithmically.\ Instead, it relies on structured human voting combined with economic incentives to converge toward fair and reliable decisions. *** #### Independent juror participation Jurors participate independently in each dispute and are evaluated economically on outcome coherence. Staking aligns incentives by creating meaningful upside for coherent decisions and downside for incoherent behavior. *** #### Commit-reveal voting Justly uses a **commit-reveal** voting scheme to protect the integrity of the voting process. The process is divided into two phases: * **Commit phase**:\ Selected jurors submit a cryptographic commitment to their vote without revealing its value. * **Reveal phase**:\ Jurors reveal the vote associated with their commitment. This mechanism: * prevents vote copying or coordination, * encourages independent decision-making, * and protects jurors from external pressure. The protocol enforces this process uniformly across disputes. Shutter-based reveal automation is planned to make the reveal step feel closer to a single-step flow while preserving the same architecture. *** #### Finalization rule The dispute finalizes when either: * all effective votes have been revealed, or * the voting deadline passes. If no effective vote exists, the defender is the default outcome. *** #### Coherent voting After the valid reveals are counted, the protocol determines the final outcome based on the jurors' votes. Jurors are considered to have voted **coherently** if their vote aligns with the final outcome. Coherence is evaluated against the collective result of the dispute, not against an external notion of correctness. *** #### Rewards Jurors who vote coherently are rewarded. Rewards are sourced from: * predefined dispute fees, * and penalties applied to incoherent participation. Rewards are distributed automatically and proportionally according to protocol rules. *** #### Penalties Jurors who vote incoherently are penalized. Penalties may include: * partial or total loss of the juror's stake, * depending on the tier and dispute configuration. Non-participation after selection is treated as incoherence. This mechanism discourages: * random voting, * low-effort participation, * and strategic manipulation. *** #### Incentive alignment The voting and incentive system is designed so that: * honest voting maximizes expected returns, * dishonest or careless voting increases economic risk, * and long-term participation favors consistent, coherent behavior. Over time, this creates a juror pool that is economically aligned with fair and reliable dispute resolution. *** #### Automatic enforcement All rewards, penalties, and fund transfers are enforced automatically by smart contracts. The protocol does not rely on discretionary intervention, manual arbitration, or centralized control to execute outcomes. This ensures: * predictability, * transparency, * and neutrality across all disputes. > Once finalized, outcomes cannot be altered or overridden. # Introduction to Justly Source: https://docs.justly.one/index Justly is a dispute resolution layer built for digital businesses. Justly is a dispute resolution layer built for digital businesses.