Question 1: You don't know that the connection is on your end, it may well be on the server's end, which is the reason for the warning about Live Chess being in beta that you get before you enter Live Chess.
Question 2: A loss is awarded for a disconnection because there is no way to tell for certain if the disconnection was because of our server or if it was intentional on the part of the player. So, a loss is given on disconnects to avoid abuse by players disconnecting themselves in a lost position. We are working on a new version of Live Chess that should fix these issues.
Two Part Question;
Question 1: How do I know that loosing the connection is on my side of the network?
Comment: It does not seem fair that if you are in a commanding position ready to checkmate in two.
Question; Why should I loose the game?
Chess.com should have the software in the program to atleast call a draw or no contest!