So lets say someone has a bunch of BTC that they need to dump quickly (lets say they stole it). Their goal is to get as much XMR as they can as quickly as possible so they put a bunch (lets say 50 trades up at -2% or something, 100BTC worth).
Lots of traders like me take those trades and pay them their XMR, they’re happy because they have the XMR, sure they have a bit of BTC locked in security deposits but they don’t care because they just want the XMR and don’t return.
I wait the 10 days, so do others and then we publish the donation TXN and open a dispute with the arbitrator, the arbitrator is asked to pay out 100BTC of trades from their own pocket which they can’t afford.
This above scenario may sound far fetched but it’s definitely a possibility, I have been using Bisq for about 6 months and completed a LOT of trades in that time and I have had 2-5 instances where the other party has gone completely AWOL and the arbitrator has had to sign the transaction.