# How arbitrator's deposit work?

**URL:** <https://bisq.community/t/how-arbitrators-deposit-work/2142>\
**Category:** Support\
**Created:** [May 30, 2017, 12:45pm UTC](https://bisq.community/t/how-arbitrators-deposit-work/2142 "2017-05-30T12:45:31Z")\
**Posts on this page:** 4\
**Page:** 1

<div class="post-metadata">

**Author:** ![Feynt](https://bisq.community/letter_avatar/feynt/32/6_22734026db12803ebb3e059622ac3534.png) [@Feynt](https://bisq.community/u/Feynt)\
**Post date:** [May 30, 2017, 12:45pm UTC](https://bisq.community/t/how-arbitrators-deposit-work/2142/1 "2017-05-30T12:45:31Z")

</div>

Hi all!

I’m not able to understand how are managed arbitrators’ deposits.

These 2 bitcoin deposits are paid to whom and in which form?

Who decide if the arbitrator, or the senior arbitrator, loose its deposit in case of a bad behaviour? And who receive these 2 bitcoin?

Thanks

---

<div class="post-metadata">

**Author:** ![alexej996](https://bisq.community/user_avatar/bisq.community/alexej996/32/491_2.png) [@alexej996](https://bisq.community/u/alexej996)\
**Post date:** [May 30, 2017, 4:04pm UTC](https://bisq.community/t/how-arbitrators-deposit-work/2142/2 "2017-05-30T16:04:38Z")

</div>

That is not implemented yet, there is still only one arbitrator, so who knows, it might even be changed from a current plan. Here is the quote from the FAQ page

> [@https://bitsquare.io/faq/#10](#):
>
> If an arbitrator’s dispute resolution is not agreed to by both traders, a second round of arbitration can be requested by either of them.
> 
> The Bitsquare system in this case will then select an arbitrator from among the highest-rated arbitrators. If collusion is found to have taken place, the misbehaving arbitrator will lose her deposit. This puts the arbitrator at a significant loss, as her security deposit was more than she made by being dishonest.

I don’t know exactly the answer to your questions, but I assume that an arbitrator deposits money to a senior arbitrator or a multisig of senior arbitrators, which I see are the arbitrators personally invited in the bootstrap phase. I also assume that they will buy some DAO coins and burn them or split the BTC between themselves. I know this would rise some decentralization concerns, but this is the best I can think of. The bitsquare is an open source project after all, so a fork in case of controversy is always a possibility.

---

<div class="post-metadata">

**Author:** ![ManfredKarrer](https://bisq.community/user_avatar/bisq.community/manfredkarrer/32/26_2.png) [@ManfredKarrer](https://bisq.community/u/ManfredKarrer)\
**Post date:** [May 30, 2017, 7:45pm UTC](https://bisq.community/t/how-arbitrators-deposit-work/2142/3 "2017-05-30T19:45:17Z")

</div>

The planned decentralized arbitration system was not implemented yet. I am the arbitrator as it is not safe to open it up yet. With the DAO we have found a good solution how we can open and decentralize the arbitration system (secured by a high security deposit of DAO tokens). As soon we get the final review from our lawyers we will publish the paper…

---

<div class="post-metadata">

**Author:** ![Feynt](https://bisq.community/letter_avatar/feynt/32/6_22734026db12803ebb3e059622ac3534.png) [@Feynt](https://bisq.community/u/Feynt)\
**Post date:** [May 31, 2017, 2:18pm UTC](https://bisq.community/t/how-arbitrators-deposit-work/2142/4 "2017-05-31T14:18:45Z")

</div>

Ok, thank you very much!

I wait for the paper!