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Telos has an arbitration process through a body called Telos Arbitration Organization (TAO). There exist a board of arbitrators, elected members voted through TLOS governance. They act independently from block producers. The arbitrators can get involved in dispute cases between Telos users, block producers and deployed smart contracts. More information about the arbitration process and arbitrators in Telos whitepaper.

Telos arbitration process has not yet been invoked but is planned for implementation by the end of 2021 or in any case where it proves critical to the network operations. The most common expected case of the invocation would be a large scale hack or a system failure. Eventually, Telos Arbitration will offer broad conflict resolution services on the Telos blockchain.

To read more about Telos on-chain governance, click here.