Summary

Contract Escrow.sol includes an optional arbiter functionality to mediate disputes among buyer and seller. Lack of automated and transparent arbiter selection process, and insufficient control over arbiter fees pose significant risks to the integrity of the escrow service potentially leading to biased or unfair outcomes.

Impact

The identified vulnerabilities in the arbitration mechanism could lead to Unfair Dispute Resolution, Loss of Trust, Financial Loss

Tools Used

Manual code review

Recommendations

Implement an automated and transparent mechanism for selecting arbiters like oracle-based solutions or reputation-based systems to ensure impartial arbiter selection and some sort of incentivizing qualified arbiters.