> For the complete documentation index, see [llms.txt](https://novacont.gitbook.io/nova-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://novacont.gitbook.io/nova-docs/decentralized-jury-system/how-it-works.md).

# How It Works

This page walks through the complete lifecycle of a dispute on NovaCont. From the moment it is opened to the moment funds are distributed. Both the perspective of the disputing parties and the role of the jury are covered here.

<figure><img src="/files/6vaif0gIwEwWOJFGpQe5" alt=""><figcaption></figcaption></figure>

### When Can a Dispute Be Opened?

A dispute can only be opened during the **Under Review** state. That is, after the provider has submitted their deliverables and before the 7-day review window has expired. Only the client or the provider may open a dispute, and only one dispute can exist per contract.

Disputes cannot be opened:

* Before the provider has submitted deliverables
* After the client has already approved the work
* After the 7-day timeout has already been claimed
* If a dispute has already been opened on the same contract

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### Opening the Dispute

The party who believes the agreement has not been fulfilled correctly initiates the dispute. This can be either the client or the provider.

To open a dispute, navigate to your contract detail page and click **Open Dispute**. You will be required to provide a **Reason URI** a link to a document, file, or statement explaining why you are disputing the delivery. This could be:

* A written statement hosted on Google Drive or any accessible platform
* A comparison document showing what was agreed versus what was delivered
* Any other evidence that clearly supports your position

> Your reason URI is recorded permanently on-chain. It will be the primary material reviewed during resolution. Be thorough, factual, and specific. Vague or unsupported claims are unlikely to result in a favorable outcome.

Opening a dispute requires paying a dispute fee. In the decentralized NovaJury system, this fee is calculated as 5% of the agreed contract value and must be paid in USDT on the Base network. This fee is non-refundable regardless of the outcome and exists to discourage frivolous or bad-faith disputes.

Once the dispute is opened, the contract transitions to **Disputed** state. The funds remain locked and neither party can access them until a resolution is reached.
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### The Counter Party Is Notified

Once a dispute is opened, the other party is expected to respond. In the decentralized jury mode, the counter party must pay their share of the dispute fee (also in USDT) within a defined response window. If they fail to do so, the smart contract allows the initiating party to trigger a default win (`triggerFeeDefault`). The initiator automatically wins the case by default. No jury deliberation is required, and funds are distributed immediately

> **In the current administered mode**, the counter party does not pay a separate fee. Instead, both parties are expected to submit their evidence and await the administrator's review. The administrator will contact both sides through available channels if clarification is needed.
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### Evidence Review

Once both parties have submitted their materials, the resolution process begins.

**In administered mode:** The administrator reviews all submitted evidence against the original contract terms. This includes the contract title, description, the provider's evidence URI submitted at delivery, and the dispute reason URI submitted by the initiating party. The administrator may request additional clarification from either party before issuing a resolution.

**In jury mode:** Three jurors are randomly selected from the active juror pool and assigned to the case. They are given a defined voting window of 48 hours to review the evidence and cast their votes independently. Jurors evaluate the same materials (the contract terms, the delivery evidence, and the dispute reason) and vote according to their honest assessment.
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### The Verdict

The resolution of a dispute is expressed as a **distribution of the locked funds** between the client and the provider. This is not a binary win or lose outcome. Partial splits are possible.

There are three standard verdict options:

**Client Wins** The client receives a full refund of their deposit. The provider receives nothing from the agreed base price. This verdict is appropriate when the provider has clearly failed to deliver on the agreed terms.

**Provider Wins** The provider receives the full agreed base price minus the platform fee. The client receives any surplus from their deposit, such as the extra deposit refund if applicable. This verdict is appropriate when the delivery clearly meets the agreed terms and the dispute is unfounded.

**Equal Split** The agreed base price is divided equally between the two parties, with the platform fee deducted from the provider's share. This verdict is appropriate when both parties share responsibility for the breakdown, or when the evidence does not clearly favor either side.

> The smart contract executes the verdict automatically and immediately upon finalization. Funds are distributed to the pending withdrawal balances of each party. Both parties must then withdraw their allocated amounts from the platform.
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### After Resolution

Once a verdict is issued and executed, the contract transitions to **Resolved** state. This is a terminal state. The contract is permanently closed and no further actions can be taken.

Both parties can withdraw their allocated funds from their dashboard at any time after resolution. Withdrawals are processed through the pull payment system. Funds are credited to your balance and you initiate the withdrawal yourself.
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### Summary of the Dispute Lifecycle

**Work submitted by provider** → Contract enters Under Review

**Client or provider opens dispute** → Contract enters Disputed. Dispute fee paid. Funds locked.

**Counter party responds** → In jury mode: counter fee paid, jurors assigned. In admin mode: evidence reviewed directly.

**Evidence evaluated** → In jury mode: 48-hour voting window. In admin mode: administrator reviews and decides.

**Verdict issued** → Funds distributed according to outcome. Contract enters Resolved.

**Both parties withdraw** → Each party claims their allocated balance from the dashboard.