When uploading a Disavow file, you should ensure your file is done correctly for these two factors:
Size
Format
Size
Your file should be NO more than 2MB. If it is, reduce it by removing some of the backlinks contained in it to fall within desired size.
Format
Please follow the format indicated by us when you are setting up "Disavow Links" in Site Explorer (screenshots below):
Click on "Disavow Links" on your Dashboard:
You can either add links in manually or by uploading a file. By clicking "Manually Add Links", the format needed will be displayed:
See format in image below: