PROTOCOL 062 · Dispute & Escalation · CircularOS
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Protocol 062 · New · Sealed 01 May 2026 · CircularOS

Dispute &
Escalation Protocol.

What happens when a weight, payment, verification, or quality claim is contested. Three escalation levels with defined timelines, evidence requirements, and decision rights. The protocol replaces informal negotiation with sovereign process. No level may be skipped.

Protocol 062 · New 3 Escalation Levels 72h · 7 Day · 14 Day Truth Ledger Anchored No Level May Be Skipped
What This Protocol Governs
Dispute TypeExamplesOpens At
Weight DisputeDeclared vs weighed-out variance >5%; supplier claims different weight from ticketLevel 1
Payment DisputeCarrot not received; wrong amount paid; dPRN proceeds delayed >14 daysLevel 1
Verification DisputePhoto rejected; material grade contested; Truth Ledger entry challengedLevel 1
Quality DisputeMaterial declared as one grade but processed as another; contamination claimLevel 1
Contract DisputeVolume commitment not honoured; schedule breach; exclusive supply violationLevel 2
Revenue Share DisputedPRN proceeds split contested; 50/50 node disagreement; covenant deduction challengedLevel 2
⏱ Level 1 · Internal Resolution · 72 Hours
Direct Resolution

The dispute is raised directly between the two parties — supplier and operator, gateway and operator, or contractor and Digital Army coordinator. No Red Team involvement at this stage.

  • Raise: Disputing party submits a written statement (email accepted) stating: what is disputed, the amount or quantity involved, the date of the transaction, and what resolution they are seeking.
  • Evidence submitted: Weight ticket, photograph, bank statement, dPRN batch reference — whichever is relevant. Verbal claims without evidence are not accepted at any level.
  • Response window: The other party has 48 hours to respond in writing with their version and evidence.
  • Resolution window: Both parties have 72 hours from the initial raise to reach an agreed resolution.
  • Agreed outcome: Written confirmation of the agreed resolution. Signed by both parties or acknowledged by email. Resolution is logged in the Truth Ledger as a dispute-resolved entry.
Escalation Trigger to Level 2
No agreed resolution within 72 hours. OR one party is unresponsive within 48 hours. OR the dispute involves a contract clause (not a transaction). → Escalate to Level 2.
⏱ Level 2 · Red Team Review · 7 Days
Red Team Adjudication

The dispute is escalated to the Red Team. Both parties submit their full evidence pack. The Red Team reviews without taking sides and issues a binding recommendation.

  • Evidence pack required: All Level 1 correspondence, weight tickets, photographs, payment records, contract clauses referenced, and a written statement from each party (max 500 words each).
  • Red Team review window: 5 days from receipt of both evidence packs to reach a recommendation.
  • Recommendation issued: Written document stating the finding, the reasoning, and the proposed resolution. Includes specific amounts, dates, and actions required by each party.
  • Binding timeline: The recommended resolution must be implemented within 48 hours of the recommendation being issued.
  • Non-compliance: If either party refuses to implement the recommendation without a formal objection, their CRM status is flagged and access to new sovereign contracts is paused pending resolution.
Weight DisputesUse the average of both party's evidence. If irreconcilable, use the lower figure and note the discrepancy in the ledger.
Payment DisputesConfirm payment records from bank statement. If Carrot underpaid, issue correction within 48h. If overpaid, offset against next collection.
Quality DisputesRed Team may request a third-party material grade assessment. Cost split 50/50 unless the dispute is found to be clearly one party's fault.
Contract DisputesRed Team reviews the signed agreement and issues a clause interpretation. Where ambiguous, interpretation favours the spirit of the original agreement.
Escalation Trigger to Level 3
Either party formally objects to the Red Team recommendation within 48 hours with new evidence not previously submitted. OR the dispute involves a sum >£5,000 or >10 tonnes. → Escalate to Level 3.
⏱ Level 3 · Sovereign Arbitration · 14 Days
Sovereign Final Decision

The Sovereign (Jermaine Murphy, MPT Ltd) makes the final binding decision. This level is not an appeal — it is a final arbitration. The Sovereign's decision is recorded in the Truth Ledger and is not subject to further internal review.

  • Full case pack submitted: All Level 1 and Level 2 documentation, plus any new evidence admitted at Level 2 escalation.
  • 14-day decision window: Sovereign reviews the full case and issues a written decision.
  • Sovereign decision includes: Finding (who is correct and why), resolution (what each party must do), timeline (when actions must be completed), and consequence for non-compliance.
  • Non-compliance consequence: Gateway deactivation, CRM status: SUSPENDED, exclusion from future sovereign contracts, and formal notice issued to the relevant regulatory body if the dispute involves material fraud.
  • External escalation: If a party believes the Sovereign decision is unlawful, they retain the right to pursue external legal remedies. The sovereign process does not restrict legal rights.
Protocol Complete
Sovereign decision issued and implemented. Truth Ledger entry sealed with outcome reference. Case closed. CRM statuses updated.
⚙️ Sovereign Jobs · Roles This Protocol Generates
Dispute Case Manager
Receive, log, and manage all dispute cases through the three-level resolution process within defined time windows.
Evidence Documentation Officer
Collect, organise, and seal all evidence submitted during dispute proceedings on the sovereign Truth Ledger.
Escalation Coordinator
Manage escalations from Internal (72h) to Red Team (7 days) to Sovereign (14 days) and issue sealed rulings at each stage.
3 sovereign jobs · View all jobs →
Protocol Seal · Dispute & Escalation · 062 · 01 May 2026
The sovereign system does not resolve disputes by memory, by relationship, or by whoever shouts loudest. It resolves them by protocol — with evidence, in writing, within defined time windows, with defined consequences for non-compliance. A system with 60+ protocols, 35 gateways, and 42 entities cannot run on goodwill when something goes wrong. It runs on Protocol 062.
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HANDSHAKE — witnesses
Handshake sealed.