Reputation

1. Reputation

The security model of Bisq Easy (a Bisq 2 trade protocol) is based on the seller's reputation. As the buyer need to send the fiat payment first in the trade process, the seller need to provide reputation so that the buyer can trust the seller to send the Bitcoin.

From version 2.1.1 on the possible trade amount depends on the seller's repuation. The higher their reputation the higher the possible trade amount (up to a ceiling of the bitcoin amount equivalent to 600 USD). Prior to v2.1.1 the user could set their min. required reputation score (for sellers) in the settings or use the recommended default value of 30 000. This has been removed in favor of the reputation based amount limits. Version 2.1.1 also introduces a change in the reputation score calculation, so that burned BSQ and bonded BSQ get doubled their value in the course of the first year.

1. 1. Reputation based trade limits

A seller can take offers up to the amount derived from their reputation score. The formula is: `Reputation score / 200 = max. trade amount in USD`. In other words, for each USD the seller needs 200 reputation points. A score of 30 000 enables trades up to 150 USD (convewrted to the used fiat currency). Though for small amounts up to 25 USD, this restriction is lifted. This is motivated by the lower risk of such small amounts and to give users more felxibility.

That way, a buyer creating an offer can be sure that either the taker (seller) has an adequate reputation score. In case the offer allows amounts below 25 USD anyone with low or no reputation can take the offer. Maker who don't want to allow that should create offer with min. amount higher than 25 USD.

A seller creating an offer will get shown the max amount which is covered by their reputation score. They still can create offers with higher amounts, but a taker will get displayed a warning about the potential risks.

1. 1. Min and max amounts

Prior to v2.1.1 the min. and max. amounts have been set to 0.0001 - 0.01 BTC. With v2.1.1 we use the fixed fiat amount (independent of Bitcoin price) of 6 USD - 600 USD (converted to the used currency). This avoid fluctuations in case of price volatility.

1. 1. Min. required repuation score

Prior to v2.1.1 users could set a min. required repuation score for sellers in the settings, or use the recommended default value (30 000). This has been removed in v2.1.1. as the amount based aproach is a better way to handle risk.

1. 1. Transition and backward compatibility with prior versions:

As long there are users who run versions priro to v2.1.1. we need to deal with some backward compatibility cases.

An offer created by a version prior to 2.1.1 can be taken by users of v2.1.1 up to 25 USD even the reputation score is insufficient as we have for such relative small amounts the requirements relaxed. In case a maker who have set the min. required reputation score to a higher level as the taker of the offer has, can reject that trade without risking panelty. The mediator can assist in doubt.

Buy offers created with v2.1.1 have set the min. required reputation score to 30 000 independent of the users setting (as that has been removed). Thus sellers still using a version lower than v2.1.1. need to have at least 30 000 reputation score to take that buy offer.