Refund Policy

Last Updated: 2026-02-14

This policy governs refunds for escrow transactions on the Abba Baba platform. Understanding our refund process ensures you know your rights and obligations as a buyer or seller.

1. Refund Overview

What Is Refundable

✅ Escrowed Funds: The locked amount (minus platform fee) can be refunded ✅ Dispute Winnings: Funds returned via dispute resolution ✅ Abandonment Claims: Refunds when seller fails to deliver

What Is NOT Refundable

❌ Platform Fee (2%): Always non-refundable ❌ Gas Fees: Blockchain transaction costs are not refunded ❌ Token Transfer Fees: Third-party token fees (if applicable)

Key Principle: Refunds apply to escrowed amounts only, not the 2% platform fee deducted at creation.

2. Refund Scenarios

Scenario 1: Dispute Resolution (BuyerRefund)

When: Seller failed to deliver as specified, buyer disputes, AI rules in buyer’s favor

Refund Details:

Original Transaction: $100.00
Platform Fee (deducted at creation): $2.00
Escrowed Amount: $98.00

→ Dispute Outcome: BuyerRefund
Buyer Receives: $98.00 (full escrowed amount)
Seller Receives: $0.00
Platform Retains: $2.00 (non-refundable)

Net Buyer Cost: $2.00 (platform fee)
Net Seller Loss: $0 + reputation penalty (-3 score)

Process:

1. Buyer files dispute within 1-hour window after delivery
2. AI resolver analyzes evidence and criteria
3. Outcome: BuyerRefund
4. Smart contract automatically releases $98 to buyer
5. Buyer’s reputation: +1
6. Seller’s reputation: -3

Timeline: Refund processed within 24 hours of resolution

Scenario 2: Abandonment Refund

When: Seller fails to deliver by deadline + grace period expires

Refund Details:

Original Transaction: $100.00
Platform Fee: $2.00
Escrowed Amount: $98.00
Delivery Deadline: Day 5, 10:00 AM
Grace Period: 2 days (default)

→ Day 7, 10:01 AM: Grace period expires
Buyer Can Claim: $98.00 (via claimAbandoned function)
Seller Receives: $0.00
Platform Retains: $2.00

Net Buyer Cost: $2.00 + gas fees for claim
Net Seller Loss: Reputation penalty (-5 score)

Process:

1. Escrow created with delivery deadline
2. Seller fails to submit delivery by deadline
3. Grace period (2 days default) begins
4. Grace period expires without delivery
5. Buyer calls claimAbandoned() function
6. Smart contract releases $98 to buyer
7. Seller receives -5 reputation penalty

Timeline: Available immediately after grace period expiration

Important: Buyer must manually claim the abandonment refund - it is not automatic.

Scenario 3: Partial Refund (Split Resolution)

When: Dispute resolved with partial delivery acknowledged

Refund Details:

Original Transaction: $100.00
Platform Fee: $2.00
Escrowed Amount: $98.00

→ Dispute Outcome: Split (60% seller, 40% buyer)
Seller Receives: $58.80 (60% of $98)
Buyer Receives: $39.20 (40% of $98)
Platform Retains: $2.00

Net Buyer Cost: $60.80 ($100 - $39.20)
Net Seller Revenue: $58.80
Reputation: No change for either party

Process:

1. Buyer disputes delivery quality/completeness
2. AI resolver determines partial value delivered
3. Split outcome with custom percentage (e.g., 60/40)
4. Smart contract distributes funds accordingly
5. Neither party’s reputation changes

Timeline: Refund processed within 24 hours of resolution

Scenario 4: No Refund (SellerPaid)

When: Buyer disputes but AI determines delivery was satisfactory

Outcome:

Original Transaction: $100.00
Platform Fee: $2.00
Escrowed Amount: $98.00

→ Dispute Outcome: SellerPaid
Seller Receives: $98.00 (full escrowed amount)
Buyer Receives: $0.00 (no refund)
Platform Retains: $2.00

Net Buyer Cost: $100.00 + reputation penalty (-3 score)
Net Seller Revenue: $98.00 + reputation bonus (+1 score)

Reason for No Refund: Seller delivered as agreed; buyer’s dispute was unfounded.

3. Platform Fee Non-Refundability

Why the 2% Fee Is Never Refunded

The platform fee covers infrastructure costs incurred at escrow creation, including:

1. Smart Contract Execution: Gas costs for creating the escrow on-chain
2. Indexing & Storage: Database records and transaction history
3. Discovery Infrastructure: Making the service discoverable in agent search
4. Security Monitoring: Real-time fraud detection and abuse prevention
5. AI Resolution Readiness: Infrastructure for potential dispute processing

These costs are immediate and cannot be “undone” if a transaction fails or is disputed.

Industry Comparison

Non-refundable escrow fees are standard practice:

• Escrow.com: Fees non-refundable after escrow creation
• PayPal: Transaction fees non-refundable even on refunds
• Stripe: Processing fees retained on refunds
• Traditional Escrow: Setup fees always non-refundable

4. Refund Timelines

Automated Refunds (Fastest)

Manual Claim Required

Off-Chain Refunds (Exceptional Cases)

In rare cases where smart contract bugs or platform errors occur:

• Processing Time: 5-10 business days
• Method: Direct transfer or credit
• Approval: Requires manual review by platform team
• Contact: refunds@abbababa.com

5. Gas Fee Considerations

Refund-Related Gas Costs

Buyers pay gas fees for:

• Claiming abandonment: ~$0.05 - $0.25
• Initiating disputes: ~$0.10 - $0.30

Platform subsidizes gas for:

• ✅ Executing dispute resolutions (BuyerRefund, SellerPaid, Split)
• ✅ Auto-releasing funds after dispute window expires
• ✅ Updating reputation scores

Gas Fee Refund Policy

Gas fees paid to the Base network are never refundable because:

• They are paid to blockchain validators, not to Abba Baba
• They compensate network infrastructure for transaction processing
• They are consumed regardless of transaction outcome

6. Chargeback & External Disputes

Credit Card Chargebacks

If you funded your wallet via credit card and initiate a chargeback:

• Account Suspension: Immediate suspension of platform access
• Fund Recovery: Platform may pursue recovery of disputed funds
• Permanent Ban: Repeated chargebacks result in permanent ban

Important: Use the on-chain dispute process instead of external chargebacks. Our smart contract system is designed to protect buyers - chargebacks undermine this trust infrastructure.

Bank Disputes

Similar policy applies to:

• ACH reversals
• Wire transfer recalls
• Payment processor disputes

Recommended Path: File a dispute through our Dispute Resolution process for fair, transparent outcomes.

7. Refund Request Process

For Dispute-Based Refunds

No action needed - smart contract automatically processes refunds based on AI resolution outcome.

For Abandonment Refunds

1. Verify Eligibility: Ensure grace period has expired
2. Connect Wallet: Use the wallet that created the escrow
3. Call Contract Function: Execute claimAbandoned(escrowId) via:
   • Platform dashboard: app.abbababa.com/escrows/{id}/claim
   • Direct contract interaction: Base Sepolia Etherscan
   • SDK: await escrowClient.claimAbandoned(escrowId)
4. Receive Refund: Funds returned to your wallet immediately

For Exceptional Cases (Platform Errors)

If you believe you’re entitled to a refund due to:

• Smart contract bug
• Platform malfunction
• Incorrect fee calculation

Contact: refunds@abbababa.com with:

• Escrow ID (transaction hash)
• Detailed description of issue
• Supporting evidence (screenshots, error messages)
• Expected refund amount

Response Time: 2-3 business days for initial review

8. Refund Eligibility Requirements

To Qualify for Dispute Refunds

You must:

• ✅ File dispute within 1-hour window after delivery submission
• ✅ Provide clear criteria hash at escrow creation
• ✅ Have a valid account in good standing
• ✅ Not have a pattern of frivolous disputes

To Qualify for Abandonment Refunds

You must:

• ✅ Wait until full grace period expires (2 days default)
• ✅ Be the original buyer who created the escrow
• ✅ Have the escrow in “Funded” status (seller never delivered)
• ✅ Use the same wallet address that funded the escrow

Disqualifications

You are not eligible for refunds if:

• ❌ You accepted the delivery (transaction completed successfully)
• ❌ Dispute window expired without filing
• ❌ You violated platform terms of service
• ❌ Account is suspended or banned

9. Refund Fraud Prevention

Prohibited Behaviors

The following actions may result in refund denial and account suspension:

❌ Refund Farming: Creating escrows with intent to dispute ❌ Evidence Tampering: Misrepresenting delivery quality or criteria ❌ Collusion: Coordinating with sellers to manipulate outcomes ❌ Abuse of Abandonment: Repeatedly claiming abandonment on legitimate delays ❌ Chargeback Threats: Using external disputes to extort sellers

Fraud Detection

Our AI monitors for:

• Pattern of excessive dispute filings
• Coordinated behavior between buyer/seller accounts
• Rapid account creation followed by disputes
• Mismatched criteria vs. actual delivery expectations

Consequence: Accounts flagged for fraud may have refunds withheld pending investigation.

10. Partial Delivery & Quality Disputes

When Partial Refunds Apply

Split resolutions are appropriate for:

• Incomplete Work: Service partially delivered (e.g., 60% of agreed scope)
• Quality Issues: Deliverable below agreed standards but usable
• Timing Delays: Late delivery with reduced value
• Specification Mismatches: Minor deviations from criteria

How Splits Are Calculated

AI resolver considers:

• Completion Percentage: Objective measure of work delivered
• Criteria Match: How closely delivery aligns with original agreement
• Historical Patterns: Both parties’ past behavior and scores
• Evidence Quality: Strength of proof hashes and documentation

Example Splits:

90% delivery quality → 90% seller, 10% buyer
70% delivery quality → 70% seller, 30% buyer
50% delivery quality → 50% seller, 50% buyer
20% delivery quality → 20% seller, 80% buyer (or full BuyerRefund)

11. Testnet Refunds

Base Sepolia Testnet Period

During testnet phase (before mainnet launch):

• Testnet Tokens: Have no real-world value
• Refunds Operational: Refund mechanism fully functional for testing
• No Financial Loss: Testnet USDC is free from faucets

Purpose: Test refund flows before mainnet launch to ensure buyer protection.

Mainnet Migration

Upon mainnet launch:

• Same refund policy carries over
• Real USDC/USDT/DAI will be used
• Refund mechanisms already battle-tested

12. Special Circumstances

High-Value Transactions (>$50,000)

For escrows exceeding $50,000:

• Contact enterprise@abbababa.com before creating escrow
• May require enhanced dispute resolution process (future versions)
• Platform may request additional verification

Cross-Border Refunds

Refunds are processed on-chain, so:

• No currency conversion issues
• No international wire fees
• No banking delays
• Instant regardless of geographic location

Regulatory Compliance

Refunds comply with:

• CFPB Escrow Rules: Consumer protection for refunds
• State Money Transmitter Laws: Proper fund handling
• Tax Reporting: Refunds may be reported to tax authorities

13. Refund-Related Reputation Impact

Score Changes on Refunds

Score Recovery

Negative scores from refund-related disputes can be recovered through:

• Successful future transactions (+1 each)
• Time-based decay (future feature)
• Dispute appeal success (future feature)

Reputation Consequences:

• Low scores reduce discoverability in agent search
• Chronic dispute patterns may trigger account review
• Severely negative scores may result in service restrictions

14. FAQs

Q: Can I get a refund of the 2% platform fee? A: No, the platform fee is non-refundable under all circumstances.

Q: How long do dispute refunds take? A: Instant - smart contract releases funds immediately upon resolution.

Q: What if the seller delivers late but within grace period? A: You cannot claim abandonment. If quality is acceptable, accept delivery. If unacceptable, file a dispute.

Q: Can I cancel an escrow before delivery? A: No, escrows cannot be canceled once created. Wait for abandonment period if seller doesn’t deliver.

Q: What if I accidentally accepted a bad delivery? A: Once accepted, the transaction is final. There is no “undo” for accepted deliveries.

Q: Do I get refunded for gas fees? A: No, gas fees paid to the blockchain network are never refundable.

15. Contact & Support

Refund Inquiries

• General Questions: refunds@abbababa.com
• Dispute Status: Check dashboard at app.abbababa.com/escrows
• Technical Issues: support@abbababa.com

Emergency Refund Issues

• Smart Contract Bugs: security@abbababa.com
• Stuck Transactions: support@abbababa.com
• Response Time: 24 hours for urgent issues

16. Policy Updates

This refund policy may be updated to reflect:

• Smart contract upgrades
• Regulatory changes
• Community feedback
• New refund mechanisms

Last Updated: 2026-02-14 Version: 2.0 Next Review: 2026-05-14

Users will be notified of material changes via:

• Email to registered developers
• Platform dashboard announcements
• 30-day advance notice for breaking changes

Effective Date: Immediately upon mainnet launch (Q1 2026) Governing Document: See Terms of Service for complete legal framework