CoinFlipZ Policy
Arbitration System with Reputation Tracking
Arbitration only — no monetary stakes, no house cut.
Payments, if applicable, are processed separately via Stripe Connect.
What is CoinFlipZ?
CoinFlipZ is PlugZ's revolutionary AI-powered dispute resolution system that provides fair, transparent arbitration for marketplace conflicts. Built with blockchain technology and cryptographic security.
Unlike traditional dispute systems that can be biased or slow, CoinFlipZ uses provably fair randomization and bilateral consent to resolve conflicts quickly and impartially. Every arbitration is recorded on-chain for complete transparency.
Why Choose CoinFlipZ?
How CoinFlipZ Works
Proposal
Either party proposes arbitration with context and dispute description. System creates arbitration room in PENDING_AGREEMENT status.
Bilateral Consent (REQUIRED)
Both parties must explicitly consent. Status changes to PENDING_CONSENT when one party consents, then to READY_FOR_ARBITRATION when both consent.
Arbitration Execution
Either party can trigger execution once both have consented. System generates cryptographically secure random result. Both parties see the proof.
Result Confirmation
Result is initially advisory. Both parties review and independently decide to confirm or reject. If both confirm, result becomes binding (CONFIRMED).
Outcome Application
Advisory results are available for reference but not legally binding. Binding results are legally binding when both parties confirmed.
Payment (If Any)
Any payment legs go through Stripe Connect under normal marketplace rules. Arbitration system itself never processes payments directly.
CoinFlipZ Technology
Blockchain Security
Solana blockchain integration with cryptographically secure randomization and immutable proof registration
Bilateral Consent System
Both parties must explicitly agree before any arbitration becomes legally binding or enforceable
Complete Transparency
Full visibility into arbitration process with on-chain proof verification and public audit trails
AI Detection Engine
Advanced algorithms detect bad faith usage patterns, gaming attempts, and manipulation behaviors
Automated Management
Smart timeout handling, session lifecycle management, and automatic status transitions
Legal Framework
Full compliance with FTC regulations, consumer protection laws, and arbitration disclosure requirements
What CoinFlipZ Determines
Included in Scope
Excluded from Scope
Important Notice
CoinFlipZ results are advisory until both parties explicitly confirm them. When both parties confirm an arbitration result (buyerConfirmed + sellerConfirmed), it becomes legally binding. Results may influence negotiations and agreements, but DO NOT directly trigger payment processing or transfer value.
Core Principles
Trust & Security
Every arbitration is secured with military-grade encryption and blockchain immutability. We never compromise on security or data protection.
Fairness First
Our system is designed to be provably fair with no house edge. Every result is mathematically verifiable and transparent.
Innovation Focus
We constantly improve our AI detection systems and blockchain integration to stay ahead of bad faith actors.
User-Centric Design
Everything we build prioritizes user experience, clarity, and protection. No hidden fees, no house cuts, no manipulation.
System Standards
Fair Arbitration
Provably random with mathematical verification
House Edge
No monetary stakes or platform profits
Availability
Always accessible arbitration system
Max Duration
Automatic timeout and resolution
Pure arbitration service. All payment processing handled separately through Stripe Connect under standard marketplace rules.
Monthly Usage Quotas
Prohibited Uses
Violation of these rules will result in permanent suspension from the system.
Bilateral Consent Process
Consent is mandatory before any arbitration can proceed
Step 1 - Proposal Review
The receiving party reviews the arbitration proposal, including:
- The dispute description
- Proposed terms (if any)
- Arbitration context type
- Reputation scores of both parties (for transparency)
Step 2 - Explicit Consent
Both parties must explicitly provide consent:
Buyer: Buyer Consent (buyerConsent): Buyer must affirmatively agree to submit the dispute to arbitration
Seller: Seller Consent (sellerConsent): Seller must affirmatively agree to submit the dispute to arbitration
Consent can be given or withheld at any time before arbitration execution. If either party withholds consent, the arbitration cannot proceed.
Step 3 - Consent Confirmation
Once both parties have consented:
- The system records the consent timestamp
- The arbitration room status changes to READY_FOR_ARBITRATION
- Arbitration can then be executed by either party
Consent is recorded permanently and cannot be revoked once arbitration has been executed. However, parties may withdraw consent before execution, which will cancel the arbitration.
Result Confirmation Process
Advisory vs. Binding Results
Advisory Results (Default State)
When: Immediately after arbitration execution, before confirmation
Nature: Results are available for review but are not legally binding
Purpose: Allows parties to review the outcome and associated proof before committing
Parties are not legally obligated to honor advisory results, though they may choose to do so
Binding Results (Confirmed State)
When: After both parties explicitly confirm the result
- Buyer must confirm (buyerConfirmed = true)
- Seller must confirm (sellerConfirmed = true)
- Both confirmations must occur within the specified time window
Once confirmed, the result becomes legally binding and both parties are obligated to honor it
Confirmation Process
- 1.Result Generation: After arbitration execution, result is generated and made available
- 2.Review Period: Both parties have a specified time window to review the result and proof
- 3.Confirmation Decision: Each party independently decides to confirm or reject
- 4.Binding Status: If both parties confirm → Result becomes binding (CONFIRMED status). If either party rejects → Result remains advisory
- 5.Legal Implications: Once both parties confirm, the result creates a binding agreement
Important Legal Notice
By confirming an arbitration result, you acknowledge that:
- You have reviewed and understand the result
- You agree to be legally bound by the confirmed result
- You understand that confirmed results may influence financial negotiations or agreements
- You accept that failure to honor a binding result may result in penalties and legal action
- You understand that any financial transactions resulting from the result will be processed separately through standard marketplace payment flows
Arbitration Contexts
CoinFlipZ supports various types of disputes through different arbitration contexts
GENERAL_DISPUTE
Purpose: General disagreements that don't fit into specific categories
Use Cases: Preference disputes, order of operations, general decision-making
Financial Impact: None - purely operational decisions
PRICE_NEGOTIATION
Purpose: Disputes over pricing, offers, or counter-offers
Use Cases: Buyer proposes a price, seller counters; Disagreement on final transaction price; Negotiation deadlocks
Financial Impact: The arbitration result may influence the final agreed price, but does not directly transfer funds. Any payment is processed separately through Stripe Connect.
TERMS_DISAGREEMENT
Purpose: Disputes over transaction terms, conditions, or requirements
Use Cases: Delivery terms disagreement; Payment method preferences; Condition requirements
Financial Impact: May influence terms of agreement, but no direct financial transfer
VALUE_ARBITRATION
Purpose: Disputes over the value or worth of items or services
Use Cases: Disagreement on item valuation; Condition assessment disputes; Market value disagreements
Financial Impact: The arbitration result may influence valuation discussions, but does not directly transfer funds. Any payment is processed separately through Stripe Connect.
DELIVERY_CONFLICT
Purpose: Disputes related to shipping, delivery, or logistics
Use Cases: Delivery method preferences; Shipping timeline disagreements; Delivery location disputes
Financial Impact: May influence shipping costs or methods, but processed through standard marketplace flows
QUALITY_DISPUTE
Purpose: Disputes over product quality, condition, or specifications
Use Cases: Condition assessment disagreements; Quality standard disputes; Specification conflicts
Financial Impact: May influence pricing or return decisions, but no direct financial transfer
While some arbitration contexts (PRICE_NEGOTIATION, VALUE_ARBITRATION) may influence financial negotiations, the CoinFlipZ arbitration system itself never directly processes payments or transfers value. All financial transactions are processed separately through standard marketplace payment flows (Stripe Connect).
Reputation System
Comprehensive reputation tracking to ensure fair participation and detect bad faith behavior
Reputation Metrics
The system tracks several metrics for each user:
Bad Faith Detection
The system uses advanced algorithms to analyze behavior patterns and detect bad faith:
Selective Acceptance Detection (40% weight)
40%Compares ratio of unfavorable rejections vs. favorable acceptances
Pattern Manipulation Detection (30% weight)
30%Analyzes consecutive rejections and timing anomalies
Timing Anomaly Detection (20% weight)
20%Detects very fast rejections (< 30 seconds) or strategic delays (> 24 hours)
Quota Abuse Detection (10% weight)
10%Monitors usage patterns and quota consumption
Risk Level Assessment
The system uses Risk Level as the primary method for determining penalties:
Score 0-39
Normal behavior, no action required
Score 40-59
Patterns of concern detected, trust warning may be applied
Score 60-79
Significant bad faith patterns, temporary suspension (30 days) applied
Score 80-100
Severe bad faith behavior, extended suspension (90 days) applied
Two Scoring Systems
CoinFlipZ uses two complementary scoring systems:
Bad Faith Score (Basic System)
Basic baseline metric for quick assessment and backward compatibility. Used as fallback mechanism when advanced system is unavailable.
Overall Bad Faith Score (Advanced System)
PRIMARY METHOD for accurate risk assessment and penalty determination. More comprehensive and accurate than basic Bad Faith Score.
Penalties and Enforcement
Automatic penalties based on risk level assessment
Medium Risk (Score 40-59)
Penalty: Trust Warning
Public warning badge displayed on your profile. No suspension, but reputation monitoring increased.
High Risk (Score 60-79) or Bad Faith Score > 70
- Temporary Suspension: CoinFlipZ access suspended for 30 days
- Trust Warning: Public warning badge displayed on your profile
- Reputation Penalty: Trust score reduced, may affect your ability to initiate arbitrations
Critical Risk (Score 80-100)
- Extended Suspension: CoinFlipZ access suspended for 90 days
- Trust Warning: Public warning badge displayed on your profile
- Reputation Penalty: Trust score significantly reduced, may affect arbitration initiation
Trust Score Threshold
Trust Score < 60: Trust warning automatically applied. Trust Score ≥ 60: Trust warning removed (if previously applied).
Suspension Details
Duration: 30 days for High Risk / 90 days for Critical Risk
Appeal: You may appeal suspensions through the dispute resolution process
Reinstatement: Automatic after suspension period, or earlier if appeal is successful
Appeal Process
Your rights regarding penalties and suspensions
Reputation Penalty Disputes
If you believe a reputation penalty was applied incorrectly:
- 1.Appeal Submission: Submit appeal within 30 days of penalty application
- 2.Evidence Review: PlugZ reviews your arbitration history and behavior patterns
- 3.Decision: You will receive a decision within 14 business days
- 4.Escalation: If unsatisfied, you may escalate to senior management
Suspension Appeals
You may appeal suspensions through the dispute resolution process. Suspensions are automatically removed after the suspension period, or earlier if appeal is successful.
Your Rights Regarding Reputation
- Transparency: You can view your own reputation metrics at any time
- Appeal Process: You can appeal penalties and suspensions
- Explanation: You have the right to understand why penalties were applied
- Correction: You can request correction of errors in reputation calculations
- Improvement: Your reputation can improve over time with fair behavior