How it Works
There are 3 trust levels of member: Gold, Silver and Bronze. A $200 Safety Guarantee backs Gold 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 BTC, BCH or LTC.
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 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 demonstrates this added protection.
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 let's say 90% of the trade value ($450) in Litecoin. User B might have that much Litecoin while short on Bitcoin and be happy to proceed. Now User A releases the bitcoins from escrow. In the trade terms User A specified User B's Litecoin would be held up 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 any percentage held, for example 100%, 120% or up to 200% of the trade value to offset chargeback risk.
Peer-to-peer lending is also supported! Loans are 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 would be collateral for the loan. Small no collateral loans of around $50-$100 are also safely possible with Silver or Gold level members as they have their identity verfied in most cases and cannot delete accounts with a loan in default. For example, by charging high enough interest to cover defaults and keeping loan amounts low, as well as requiring proof of income, no collateral loans may be executed safely. Learn more