No. The idea is to create a new account, and this account, make a 2 of 3, in this system only need to give authority to each of three parties. The arbiter is the third. Pre-signed transactions can be used to prevent gaming the other side.
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I'm sorry I don't follow. This is an account with decentralized authority... It's better than a 3 party system you can have as many eyes on the transaction as the network will allow.
This is an improvement over Hive Engine, but those who trade with that system are giving up custody of their cryptocurrency. The case where this doesn't happen is on-chain Hive to HBD trades. I think we can do even better.