Dispute Policy

1. Principle

Disputes within a circle are resolved by circle members through governance — not by Circl. Circl provides the system to raise, track, and resolve disputes; the circle decides outcomes.

2. Raising a dispute

Any member of a circle can raise a dispute about:

• Missed or late contributions
• Disputed payouts
• Allegations of rule violation
• Behavioural concerns
• Loan repayment issues (when lending is active)

Disputes are raised at /circles/[id]/disputes with a description, supporting evidence, and the parties involved.

3. The dispute lifecycle

1. Raised: A member opens a dispute. Notification sent to all members of the circle.
2. Evidence: Parties involved can attach evidence (text, documents, transaction references). Other members can comment.
3. Discussion: Members discuss within a defined window (typically 7 days, configurable per circle).
4. Resolution proposal: Any member can propose a resolution. Multiple resolutions are allowed.
5. Vote: Members vote on the resolution proposal under the circle's standard governance rules.
6. Outcome: Passing resolution is executed. Audit trail records every step.
7. Appeal: Resolutions can be challenged via a new proposal if new evidence emerges.

4. Platform involvement

Circl does not adjudicate, mediate, or take sides in member disputes. Our role is limited to:

• Providing the dispute system and audit trail
• Ensuring votes are recorded accurately
• Notifying involved parties
• Where required by law: cooperating with regulators, courts, or AML investigations

5. Escalation outside the circle

If a circle cannot resolve a dispute through governance, members may pursue resolution through:

• Mediation (where members agree)
• Civil legal proceedings in the appropriate jurisdiction
• Reporting to relevant authorities for criminal matters (fraud, theft)

Circl provides full audit records on request to support legal proceedings.

6. AML and regulatory disputes

If a dispute involves potential anti-money-laundering, fraud, or terrorism financing concerns, Circl may apply a platform override to freeze the circle pending investigation. All overrides are audit-logged with reason and visible to members.

7. Records

Every dispute, evidence submission, comment, vote, and resolution is recorded immutably in the audit trail. Records are retained per the regulatory retention schedule and available to members of the circle and (on request) to regulators.