Arbitration Rules

Effective date: January 2026

This page describes how disputes, proofs and counter‑proofs are handled on VSmarket. It is an integral part of the Terms of Use and theRisk Disclosure. By creating or joining any challenge, you acknowledge that you have read, understood and accepted these Arbitration Rules.

1. Overview of the Arbitration System

VSmarket is a neutral, non‑custodial infrastructure for peer‑to‑peer skill challenges. Outcomes are determined in three stages:

  1. Proof & Proof of Silence (automatic settlement). A player submits a proof hash claiming victory. If no valid contestation is raised within the configured silence window, the smart contract can be finalized in favour of the claimant.
  2. Dispute & Arbitration (manual review). If the other player files a timely counter‑proof hash during the silence window, the contest becomes disputed. A dispute admin (or future decentralized governance mechanism) reviews the materials and applies one of the outcomes described below.
  3. Mutual resolution (pre‑proof agreement). If both participants agree that the contest should be resolved without a winner (for example due to a tie, cancellation, nullity, rematch agreed, or any situation where the stake should be redistributed), they can execute an on‑chain mutual resolution before any proof is submitted. The protocol fee still applies on the stake pool; the remaining net stake is split between both players and deposits are refunded. A single participant proposing mutual resolution does not lock the contest: a proof remains submittable unless both participants confirm the mutual resolution on‑chain.
  4. No‑proof cancel (timeout settlement). If no one submits any proof within the no‑proof cancel window (snapshotted per contest at match time), anyone may call the on‑chain no‑proof cancel function to split the net stake between both players and refund deposits.

VSmarket does not recreate matches or investigate facts outside the submitted proofs. All arbitration decisions are based solely on the content and metadata that participants submit on‑chain or via designated off‑chain channels.

2. Proof, Counter‑Proof & Evidence

A proof is any admissible material submitted by the self‑declared winner to demonstrate that they won under the rules of the challenge (for example, scoreboard screenshots, in‑game victory screens, match logs, recordings, etc.).

A counter‑proof is any admissible material submitted by the opposing player to dispute the original proof (for example, contradictory scoreboard evidence, video showing rule violations, evidence that the match did not take place as claimed, or that a different account played).

Both proofs and counter‑proofs are typically referenced via content hashes(on‑chain commitments) and, optionally, URIs (e.g. IPFS links) to help retrieve the underlying media later. You are solely responsible for ensuring that your submissions are accessible, clear and complete.

On-chain, the protocol stores only hashes for proof/counter‑proof integrity. Where the interface displays an URI, the hash remains the source of truth: reviewers can re‑hash the referenced content and verify it matches what was committed on‑chain.

Important: blockchain transactions, content hashes and any linked content may be publicly accessible and may be stored indefinitely by third‑party networks, gateways, explorers, indexers and caching providers. VSmarket does not control these third parties and generally cannot delete or modify records once published.

Off‑chain coordination channels. For some challenges, players may use VSmarket‑provided Discord challenge chats to coordinate logistics (for example scheduling, lobby details, or rule clarifications). These chats are not end‑to‑end encrypted and may be accessible to VSmarket moderators.

In the event of a dispute, relevant excerpts from these Discord challenge chats may be consulted contextually by VSmarket as supplementary information, together with on‑chain proofs and counter‑proofs, to help assess intent, good faith and consistency. Discord messages alone are never determinative of a result, but they may be considered as supporting elements under these Arbitration Rules.

Do not submit unlawful content, malware, doxxing, private messages, sensitive personal data, or third‑party intellectual property unless you have the rights and permissions required to share it. You remain solely responsible for the content you submit.

2.1 Requirements for a Valid Proof

A proof is generally considered valid when, at minimum:

  • it clearly identifies the correct game / match / lobby for the disputed challenge;
  • it shows the final result (scores, win/loss, time, or equivalent outcome);
  • it can reasonably be tied to the wallet / account that joined the challenge;
  • it is not obviously edited, truncated in a misleading way or inconsistent with the rules;
  • it is submitted within the allowed time window configured in the contract.

2.2 Invalid or Abusive Proofs

Without limitation, a proof may be considered invalid orabusive if:

  • it shows a different match than the one associated with the challenge;
  • it is fabricated, edited, or otherwise manipulated to misrepresent the outcome;
  • it omits material information (e.g. cropped to hide a loss or disconnect);
  • it relies on an account that is not controlled by the wallet that joined the challenge;
  • the match clearly did not occur under the posted rules or did not occur at all;
  • it is spam, blank content, or obviously unrelated media;
  • it is submitted in bad faith or with the intent to harass, grief or exploit other users.

The same principles apply to counter‑proofs. Submitting a knowingly false or misleading counter‑proof can result in the same consequences as submitting a fraudulent proof.

3. Silence Window & Automatic Settlement

After a proof is submitted, the contract starts a silence window(configured on‑chain and snapshotted per contest at match time). During this window, only the other participant may contest the proof by submitting a counter‑proof hash on‑chain.

  • If no dispute is opened within the silence window, anyone may call the settlement function and the contest is automatically settled in favour of the claimant. Deposits are refunded to both players and the protocol fee is deducted from the total stake.
  • If a dispute is opened in time, the contest is locked in a disputed state until an arbitrator decision is recorded.

3.1 Mutual Resolution (Pre‑Proof)

After a contest is created (i.e. once two players have matched), VSmarket supports a mutual resolution path to handle situations where there is no clear winner or both parties agree not to proceed (for example: tie, mutual cancellation, match void/nullity, rematch agreed, or any equivalent outcome where funds should be redistributed).

  • Mutual resolution is available only before any proof hash is submitted.
  • It requires both participants to confirm on‑chain. If only one participant proposes it, the contest remains active and a proof is still submittable.
  • The protocol fee is deducted from the stake pool; the remaining net stake is redistributed between both players (typically 50/50), and behaviour deposits are refunded.

3.2 No‑Proof Cancel Window

VSmarket also supports a no‑proof cancel path to prevent funds from being stuck if nobody submits any proof.

  • If no proof hash is submitted by the time contestStartedAt + contestMaxNoProofWindow is reached, anyone may call the on‑chain no‑proof cancel function.
  • The protocol fee is still deducted from the stake pool; the remaining net stake is split 50/50 between both players.
  • Both behaviour deposits are refunded on this no‑proof cancel path (this path does not slash deposits).

Once an automatic or arbitrated settlement is recorded on‑chain, it is final and irreversible.

4. Admin Outcomes in a Dispute

In a disputed contest, the admin (or future governance mechanism) reviews the proofs, counter‑proofs and any associated metadata. VSmarket may use automated tools (including heuristic or AI‑assisted checks) to help detect manipulated media, spam or repeated abuse patterns. Any such tools are informational only and do not guarantee accuracy. The arbitrator may choose exactly one of the following six outcomes:

Admins can only resolve a contest after a proof is submitted. Additionally, if a contest is still in the active state (i.e. not yet disputed), adminscannot bypass the silence window; arbitration is only possible once proofTime + silenceWindow has elapsed.

  1. Uphold winner. The original claimant is confirmed as the winner. The net stake (after protocol fee) is paid out to them. Their behaviour deposit is refunded, and the opponent’s deposit is slashed.
  2. Flip winner. The opponent is recognised as the rightful winner. The net stake is paid to them. Their deposit is refunded, and the original claimant’s deposit is slashed.
  3. Cancel (no abuse) / Void & Split. Neither side is clearly at fault or the match result cannot be reliably established, but there is no clear evidence of fraud. The net stake is split between both players and both deposits are refunded.
  4. Cancel (both abusive) / Both lose. Both players are found to have violated the rules (for example, coordinated griefing, obvious fabrication of evidence on both sides, or clear collusion). The net stake is split between both players and both behaviour deposits are slashed.
  5. Cancel (only creator abusive). The net stake is split between both players. The creator’s behaviour deposit is slashed, while the joiner’s deposit is refunded.
  6. Cancel (only joiner abusive). The net stake is split between both players. The joiner’s behaviour deposit is slashed, while the creator’s deposit is refunded.

The specific token flows and slashing behaviour follow the exact smart contract implementation. Where this text and the deployed contract differ, the contract prevails.

5. Fees & Deposits

5.1 Protocol Fee (on‑chain parameter)

For each completed contest, a protocol fee (expressed in basis points) is configured and enforced on‑chain. The fee is deducted from the total stake at settlement and is paid to the on‑chain fee recipient address. This fee compensates for infrastructure, maintenance, and the operation of the arbitration system.

The remainder of the stake after fee deduction is the net stake that is allocated to players according to the rules and outcomes described above. The exact fee percentage may change over time via on‑chain governance/administration; the contest uses a fee snapshot taken at match time, and that snapshot governs settlement.

5.2 Behaviour Deposit (on‑chain parameter)

In addition to the stake, each player posts a behaviour deposit(expressed in basis points relative to the stake) as configured on‑chainand snapshotted per challenge/contest at creation / match time. This deposit is designed to discourage abusive behaviour, griefing and fraudulent proofs.

  • In normal cases where no abuse is found, both deposits are fully refunded to the respective players once the contest is settled.
  • If a player is found to have violated these Arbitration Rules (for example by submitting fabricated evidence, claiming victory when the match clearly did not take place, impersonating another player or systematically griefing opponents), their deposit may be slashed and retained by VSmarket.
  • In the most severe cases, both deposits may be slashed if both sides engaged in abusive behaviour.

Deposit slashing is discretionary within the bounds of the contract and may take into account the severity, frequency and intent of the behaviour.

6. Examples of Behaviour That May Lead to Slashing

The following non‑exhaustive examples may result in partial or full loss of deposit:

  • submitting screenshots or videos that are clearly edited or fabricated;
  • claiming victory when the match obviously did not occur or was never started;
  • using someone else’s account or identity without consent to play or to submit proofs;
  • deliberately disconnecting, refusing to play, or otherwise sabotaging the match while still claiming a win;
  • repeatedly opening bad‑faith disputes with no meaningful evidence, with the intent to harass or delay counterparties;
  • coordinated abuse or collusion between multiple wallets to farm rewards, distort statistics or grief honest players;
  • any other conduct that a reasonable person would recognise as dishonest or abusive.

These examples are illustrative. VSmarket reserves the right to treat analogous behaviour as abusive even if not explicitly listed.

7. No Appeal & No Guarantee of Review

Arbitration is provided on a best‑effort basis and depends on available resources. VSmarket has no obligation to review, investigate, or resolve any particular dispute, and may decline to act where evidence is insufficient, contradictory, abusive, unlawful, or where doing so would create security, legal, or operational risk. We do not guarantee that every dispute will be reviewed, nor that review will occur within any specific timeframe. Where a dispute is reviewed and a decision is recorded on‑chain, that decision is final.

You acknowledge that:

  • there is no formal appeal process within VSmarket;
  • you waive any right to seek external review, damages or injunctive relief against VSmarket in connection with arbitration decisions, to the fullest extent permitted by law;
  • your sole remedy, where available, is to stop using the platform and to withdraw any remaining funds that are not locked in active challenges.

8. Relationship to Terms of Use & Risk Disclosure

These Arbitration Rules should be read together with the Terms of Use and the Risk Disclosure. In case of conflict:

  • the smart contracts govern token flows and settlement logic;
  • the Terms of Use govern your overall relationship with VSmarket;
  • these Arbitration Rules clarify how disputes are assessed, how behaviour deposits may be refunded or slashed, and how no‑proof cancellations are handled.

9. Emergency Pause

VSmarket includes an emergency pause switch controlled by the contract owner. When the protocol is paused, most on‑chain actions are disabled, including:

  • Create / join / cancel challenge actions,
  • Proof & counter‑proof submission,
  • Finalize (no‑dispute settlement) and no‑proof cancel,
  • Admin dispute resolution.

If the protocol is paused, funds may remain escrowed until the protocol is unpaused. The pause mechanism is designed for incident response and user protection.

10. Third‑Party Platforms; No Affiliation

Challenges may reference third‑party platforms, services, games, publishers, trademarks or other brands. VSmarket is not endorsed by, affiliated with, sponsored by, or partnered with any such third parties unless explicitly stated in writing by VSmarket. Nothing in these Arbitration Rules grants VSmarket any ownership rights in third‑party intellectual property.

Any in‑game rules, account policies, bans, moderation actions, match validity, or platform outages are determined solely by the relevant third‑party provider. VSmarket does not control, operate, or guarantee access to third‑party services.

11. Your Acceptance of the Arbitration Rules

By creating, joining or interacting with any challenge or contest on VSmarket, you:

  • confirm that you have read and understood these Arbitration Rules, the Terms of Use and the Risk Disclosure;
  • agree that proofs, counter‑proofs and arbitrator decisions are the sole basis for the allocation of stakes and deposits;
  • accept that protocol fees and behaviour deposits may be retained by VSmarket in cases of abuse, as described above;
  • waive any conflicting rights or remedies to the fullest extent permitted by applicable law.

If you have questions about these Arbitration Rules, please contact VSmarket through official channels before creating or joining challenges. Continued use of the platform constitutes your ongoing acceptance of any future updates to these rules.