Disclaimer & Risks.
Not Advice
Speak to a qualified professional in your jurisdiction before committing funds to any on-chain system, including this one.
Smart Contract Risk
The Blue Escrow contract is non-upgradeable by design — there is no migration path if a bug is discovered post-deploy. The trade-off is that no admin key can be used to seize or freeze your funds; the cost is that the contract cannot be patched in place.
Network / L2 Risk
Arbitrum One is an L2 that depends on Ethereum L1 for finality and on its own sequencer for ordering. Sequencer downtime, deep reorgs, or future protocol upgrades can delay or interrupt the ability to settle deals. The protocol cannot guarantee block production, ordering, or finality.
Funds bridged to Arbitrum rely on Arbitrum's bridge contracts. Withdrawing back to Ethereum mainnet follows Arbitrum's standard withdrawal window. We do not operate any bridge and do not insure bridge risk.
Wallet & Key Risk
- Phishing — confirm the URL bar and every signature prompt before signing.
- Malware — keep the device you sign on free of installed software you do not trust.
- Approval scams — never approve unlimited spending on tokens you don't intend to spend.
- Hardware wallets are strongly recommended for any deal above a trivial amount.
Middleman Misuse
Middlemen are humans (or organizations) you choose voluntarily. They are not employees of the protocol, are not vetted by us, and operate independently. Their reputation is on-chain, public, and based on the deals they have ruled — read it carefully before agreeing.
MediumA misbehaving middleman cannot steal your funds — the contract does not allow it — but they can sign in a way you disagree with. Reputation damage is the only on-protocol consequence.
MEV / Oracle
The Escrow contract does not rely on external oracles for price data, time-locked logic, or off-chain attestations, so oracle manipulation is not a vector for this protocol. Mempool-level MEV risk is also limited because deal release requires signed counterparty consent — there is no front-runnable arbitrage in the contract's state machine.
Both risks are disclosed here for completeness. Future versions that introduce price-aware features will re-evaluate this section.
Regulatory Uncertainty
The regulatory treatment of permissionless escrow protocols, on-chain reputation, and stable-coin settlement varies by jurisdiction and changes over time. New rules may make some uses of the protocol unlawful in your country without warning, and we cannot guarantee continued availability of the frontend or off-chain services in any specific jurisdiction.
Tax Responsibility
You are responsible for determining what taxes apply to your activity on the protocol and for filing the relevant returns in your jurisdiction. The protocol does not issue tax forms, does not track cost basis, and cannot provide tax advice. Consult a qualified tax professional.
No Insurance
Third-party DeFi insurance products may cover some failure modes but require you to purchase coverage proactively. We do not endorse any specific provider.
Last-resort Jurisdiction
For disputes that fall outside on-chain arbitration (e.g., claims against the protocol's authors rather than between counterparties), the courts of the jurisdiction designated in the final Terms of Service have exclusive competence. Until that jurisdiction is fixed in the published Terms, the disclaimers above do not waive any non-waivable consumer-protection rights in your country of residence.
Acknowledgment
By signing the SIWE login message or by submitting any transaction to the Escrow contract, you acknowledge that you have read these risks, that you understand each of them, and that you accept that no one will compensate you if a risk materializes. If you cannot accept that, do not use the protocol.