How it Works
A $200 Safety Guarantee backs trustworthy members. Additionally, trades can be secured with dual escrow.
It's possible to trade any combination of assets. Escrow backing trades is the US dollar equivalent value funded with Bitcoin or Litecoin.
Unfortunately single side escrow can produce losses because many cash payment methods are reversible and risky. Escrowed coins released to someone paying cash can still result in a loss to the seller. To solve this we implement a first in the cryptocurrency community: dual escrow. Our platform allows one trader, neither trader, or both traders to place funds in escrow. These funds can be any percentage of the trade value. The following example demonstrates how this protects traders.
User A is selling $500 of Bitcoin in exchange for a bank transfer. This is normally a risky trade where User A can lose $500! With dual escrow User A first escrows $500 of Bitcoin so User B initiates a bank transfer for $500. Additionally, User A might require User B escrow say 90% of the trade value ($450) in Litecoin. User B might have that much Litecoin while short on Bitcoin and is happy to proceed. Now User A releases the bitcoins from escrow. In the trade terms User A specified User B's escrow would be held 5 to 10 days while the bank transfer settled. In this way the most User A can lose is about 10% of the trade value or $50. In the meantime, User B receives $500 in bitcoins immediately for use.
This is one example. User A can require another percentage held, for example 100%, 120% or up to 200% of the trade value to offset risk.
Peer-to-peer lending is also supported. Loans are considered a type of trade, with the trade always one US dollar amount for a higher US dollar amount. Similar to regular trades escrow is an option, but in this case would serve as collateral for the loan. No collateral loans are another option, but are more risky. Ways to reliably limit risk for no collateral loans are being explored and may be introduced in the future as these would be the most helpful form of loan. Learn more