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Fees, protection levels, milestone rules & dispute process
Each contract requires a protection level. The Protection Level is automatically assigned based on the contract amount — it determines features, dispute SLA, and max contract value, not cost. The only financial charge is the Platform Fee (deducted from freelancer payouts, based on subscription tier). A flat $10 Mediation Fee per party applies only if a dispute is opened (winner may be refunded at admin discretion).
| Level | Max Contract | Dispute SLA | Mediation Fee | Includes |
|---|---|---|---|---|
| Basic | $5,000 | 14 days | $10 | Standard escrow protection, email support |
| Standard | $50,000 | 10 days | $10 | Dispute mediation, evidence review, priority chat support |
| Premium | $250,000 | 7 days | $10 | Dedicated mediator, NDA/IP templates, legal review, project insurance (up to $10K) |
| Enterprise | $1,000,000 | 3 days | $10 | Dedicated account manager, custom insurance, API access, SSO, compliance support |
Fee Summary
Platform Fee varies by subscription tier only (not protection level). Discounts are calculated automatically based on the user's active subscription at the time of payout.
| Tier | Max Contract Value | Active Contracts | Daily Volume | Creations / Day |
|---|---|---|---|---|
| Basic (Free) | $5,000 | 3 | $10,000 | 2 |
| Standard | $50,000 | 15 | $100,000 | 5 |
| Premium | $250,000 | 50 | $500,000 | 10 |
| Enterprise | $1,000,000 | 200 | $2,000,000 | 25 |
Enterprise contracts exceeding $1,000,000 require a custom agreement with dedicated account management. All daily limits reset at midnight UTC.
Milestone-based contracts release funds per completed deliverable. The client funds each milestone in advance; the freelancer submits work; the client reviews and approves.
Client Funds Milestone
Funds are locked in escrow for the upcoming milestone. The freelancer can see that the milestone is funded and work can begin.
Freelancer Submits Work
The freelancer submits deliverables and marks the milestone as complete. The client is notified.
Client Reviews
The client has 7 days to review the submission. They can approve (release funds), request revisions, or open a dispute.
Payment Released
Upon approval, funds are released to the freelancer minus the platform fee. If no action is taken within 7 days, funds auto-release.
Either party may request cancellation. The outcome depends on the contract stage:
Either party can cancel freely. No fees, no penalties. The contract is voided and any unfunded milestones are removed.
Mutual cancellation: full refund of funded milestones. Unilateral cancellation by client: 95% refund (5% compensation to freelancer). Unilateral cancellation by freelancer: full refund to client, strike recorded.
Completed milestones are paid out. The current in-progress milestone enters dispute resolution unless both parties agree on a split. Future unfunded milestones are cancelled with no charge.
Dispute Opened
Either party opens a dispute on a specific milestone or the overall contract.
Response Period (72 hours)
The other party has 72 hours to respond with their counter-argument and evidence.
Evidence & Mediation
Both parties submit evidence (screenshots, deliverables, communications). A Cometbid mediator reviews the case.
Resolution Decision
The mediator issues a binding decision: full refund to client, full payment to freelancer, or a proportional split.
Funds Distributed
Funds are released according to the decision. Both parties are notified and can view the resolution summary.
During an active dispute, all funded milestones remain locked. A flat mediation fee of $10 per party is charged when a dispute is opened. The winner may be refunded at admin discretion; the loser forfeits the fee.
Cometbid enforces a layered accountability system to protect both clients and freelancers. The system relies on strikes, reputation, inactivity safeguards, and mediation fees to ensure commitment and deter abuse — without financial deposits.
Layer 1: Strike System (rolling 12-month window)
Freelancer Strikes
Triggers: lost dispute, contract abandonment, unilateral cancellation after work started, submission of fraudulent deliverables.
Client Strikes
Triggers: lost dispute, repeated frivolous disputes, non-payment of funded milestones, bad-faith cancellation after freelancer started work.
Layer 2: Inactivity Auto-Cancellation
If a freelancer accepts a contract but does not submit their first milestone within the deadline, the contract is automatically cancelled:
"Show activity" means any milestone status update, message to the client, or deliverable upload. The freelancer does not need to complete the milestone — just demonstrate they have started.
On auto-cancellation: client receives full escrow refund immediately (automatic, no admin review required). Freelancer receives an abandonment strike. A notification is sent 24 hours before the deadline as a warning.
Layer 3: Platform Fee at Payout
The freelancer's Platform Fee is deducted automatically from each milestone payout. This means:
If a dispute occurs before any milestone is paid, the freelancer's penalty is applied via the strike system and reputation impact only — no financial penalty beyond losing the contract.
Layer 4: Reputation & Contract Gating
Layer 5: Dispute Outcomes
Strikes can be appealed within 14 days via the support channel. Strikes expire after 12 months of clean activity (no new violations). The platform reserves the right to escalate directly to a permanent ban for severe fraud, identity theft, or repeated abuse patterns.
Contracts can optionally include NDA and IP Assignment clauses:
After the freelancer submits work for a milestone:
Creating or signing an Escrow Contract requires identity verification. This is a hard gate — you cannot proceed without completing verification. This protects both parties by ensuring real identities are tied to financial commitments. Verification is a one-time process and applies across all Cometbid escrow products.
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