I was asked by the OP to provide escrow for these deals. If someone wants to do this then I possibly can do that if the procedure has been fully negotiated.
I see the rules as:
Buyer and seller invest $5000. Total of $10K in the escrow address.
If after 5 months btc-e is not back then buyer and seller get their $5K back each.
If in these 5 months btc-e comes back then seller receives $5K from the buyer from escrow address and his $5K from seller he put into escrow address. Buyer would receive $10K in BTC and buyer would have paid $5K for it.
Let me know if someone wants to do this.
Please also let me know about potential risks in this setup.
I think you misunderstood a point, if the 5 months pass and btce does not come back online buyer does not get anything. Its basically like a double down on a roulette game, if you win and btce is back your money doubles, if you don't you lose it all and seller gets the jackpot.
I understood his offer in a same way as you did.