CHLOM License Exchange (LEX) — Dispute Resolution & Arbitration Module Specification (Phase 3→4)

Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — Decentralized Dispute Resolution, Arbitration, and Enforcement System for Licensed Asset Transactions

1. Purpose

This document defines the high-level architecture, security model, and procedural workflows for the LEX Dispute Resolution & Arbitration Module. This system ensures that any disagreements over license transfers, compliance results, or settlement terms are handled in a transparent, verifiable, and DAO-governed manner.

2. Core Functions

• Dispute Submission Portal: On-chain/off-chain hybrid interface for filing disputes.
• Evidence Management: Secure storage of documentation, proofs, and ZKP verification data.
• Arbitration Workflow: Structured process for case review by elected DAO arbiters.
• Multi-Phase Rulings: Initial ruling, appeal window, and final enforcement.
• Enforcement Hooks: Automatic adjustment of escrow, payouts, or license status post-ruling.

3. Dispute Lifecycle

1. Initiation: Buyer, seller, or regulator triggers a dispute before final settlement.
2. Evidence Submission: Parties upload evidence (encrypted off-chain, hash anchored on-chain).
3. Arbiter Assignment: Randomized selection of DAO-certified arbiters from staking pool.
4. Deliberation: Arbiter panel reviews evidence, risk scores, and compliance proofs.
5. Decision: Majority vote outcome; ruling logged on-chain.
6. Enforcement: Contract updates escrow/payout/license state automatically.
7. Appeal: Optional appeal process with expanded arbiter panel.

4. Data Structures

• Dispute Record:

{
  "dispute_id": "disp-456",
  "order_id": "ord-789",
  "initiator": "0xabc...",
  "status": "open",
  "assigned_arbiters": ["0x1a2b...", "0x3c4d..."],
  "evidence_hashes": ["Qm123...", "Qm456..."]
}

• Ruling Record:

{
  "dispute_id": "disp-456",
  "ruling": "refund_buyer",
  "vote_count": {"yes": 3, "no": 1},
  "finalized": true
}

5. Security & Compliance

• ZKP Evidence Validation: Cryptographic proofs for data authenticity.
• Anti-Collusion Measures: Random arbiter selection with slashing for misconduct.
• Privacy Controls: All sensitive evidence encrypted off-chain, with access controlled by dispute participants.
• Regulatory Integration: Jurisdiction-specific dispute compliance rules supported via policy engine.

6. AI/ML Integration

• Case Prioritization: AI-based severity scoring to prioritize urgent cases.
• Fraud Pattern Cross-Check: ML models match disputes against known fraud behaviors.
• Decision Support Tools: NLP-powered document summarization for arbiters.

7. Developer Notes

• Languages: Solidity (EVM) primary; Rust (Substrate) optional.
• External Integrations: IPFS/Arweave for evidence storage, DAO governance modules for arbiter assignment.
• Code Example:

function submitDispute(uint256 orderId, string memory evidenceHash) public {
    require(orderExists(orderId), "Invalid order");
    disputes.push(Dispute(orderId, msg.sender, evidenceHash));
    emit DisputeSubmitted(orderId, msg.sender);
}

This module ensures disputes in the CHLOM License Exchange are resolved with fairness, transparency, and compliance, backed by DAO governance.