How to resolve a dispute between the lender and the borrower on Biterest?


During the loan period it is possible that a dispute between the lender and the borrower may arise, due to either the fault of a user, or as a result of a technical malfunction. In order not to lose their fiat money or bitcoins, it is recommended that the users quickly solve the problem using biterest’s dispute resolution process.

1. What should the users do if a dispute arises between the lender and the borrower?

The borrower and the lender are equal participants of the loan deal. Each of them can appeal to Biterest dispute resolution support to solve their problem. At certain stages of the loan, it is possible to make a request — the Appeal to Dispute Resolution" button " is activated.

2. How does the Dispute Resolution take place on Biterest?

Dispute Resolution is the process of resolving disputes between the borrower and the lender when one of the parties is suspected if not upholding their obligations. The process of arbitration is carried out by the Biterest administration. The administration interrogates the loan participants and has the right to request the necessary documents for a decision making.

The communication process during the Dispute Resolution is open to both parties. It is conducted solely in the conversation window created for the particular loan deal. The users cannot chat during the arbitration process on their loan application page. However, their previous correspondence in the chat may be taken into account by the administration during the proceedings.

3. What rules have to conduct the users during the Dispute Resolution?

The users have to promptly answer questions — each party of the loan deal has 24 hours to respond and provide all the comprehensive information which can be asked by the administration. A response with a delay exceeding the specified period, the provision of incomplete information and documents, or disregarding the arbitration process may adversely affect the decision in your favour.

4. When does the borrower obtain the opportunity to apply to arbitration?

The borrower receives a notification of the transferring of money when the lender clicks the button "I have transferred money." If the transfer is made using PayPal or other payment systems, the opportunity to apply to arbitration lasts 10 days from the moment of the notification delivery. If the money is sent using a bank transfer, the opportunity to apply to arbitration becomes available on the fifth day and lasts only five days. After that the borrower will no longer have the opportunity to dispute the creditor's actions or write a complaint.

5. When does the lender obtain the opportunity to apply to arbitration?

The opportunity to appeal to the dispute resolution is granted for an equal number of days for both parties of the loan. The lender can make a dispute after the borrower has pressed the button "I have transferred money". The lender has 10 days for applying if the borrower sends money using PayPal or other payment systems, or five days (from the 5th to the 10th day) if the money is transferred by bank.

If the lender confirms the receipt of money by clicking "I received the money”, they automatically lose the opportunity to apply to arbitration. The access keys to the collateral will be transferred to the borrower.

6. What decisions can the Biterest administration make as an arbitration award at the stage of transferring money to the borrower?

  1. In the case that the lender indicated that they had sent money to the borrower, but after the arbitration it was determined that they hadn’t sent it, the loan deal is then terminated and the keys to the collateral are returned to the borrower.

  2. If the lender had sent money, but the borrower did not notice it, the loan period continues and the borrower has to return the money to the lender before the end of the loan period. Otherwise, the lender receives the collateral.

  3. If during the arbitration proceedings, it is confirmed that the lender had sent the money and the borrower had not received the funds, then, as a result of the Dispute Resolution, the money is delivered to the borrower and the Biterest administration restarts the credit period — it begins at the time of the arbitration award.

7. What decisions can the Biterest administration make as an arbitration award at the stage of the money repayment to the lender?

  1. If the borrower did not return the money to the creditor on time, but indicated the repayment of the loan, the deal closes in favor of the lender — they receive the keys to the collateral.

  2. If the borrower had sent money on time, but the lender did not notice them, the loan deal is considered successfully completed in favor of the borrower — the keys to the collateral are sent to the borrower.

  3. If during the arbitration proceedings, it is confirmed both that the borrower had made the repayment of the loan and that the money didn’t reach the lender, then, as a result of the Dispute Resolution, the money eventually goes to the lender's account and the loan deal is considered successfully closed in favor of the borrower, who receives the collateral.