Difference between revisions of "Table of penalties"

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(→‎Penalties: add reference to new penalty for privately contacting peer outside of Bisq)
 
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== Penalties == 
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Bisq has [[Trading_rules|Rules]] in place to make the trading process as safe and convenient as possible for all parties involved, and it is important those rules are followed by users.
  
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''' BTC Buyer issues:'''  
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Penalties are a percentage of the trade amount, deducted from the offending peer's security deposit (and when needed, also from trade amount itself) and offered as a compensation to the other peer during the [[Dispute_resolution#Level_2:_Mediation|Dispute resolution process]]
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The actual penalty will be '''up to''' the values detailed below, depending on security deposit % and mediator's discretion.
 +
 
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100% penalties are for serious violations and will always imply losing the whole amount (trade + deposit).
 +
 
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If two or more penalties are caused by the buyer or seller the penalty amount will be greater of the amounts. Penalties are not cumulative.
 +
 
 +
Ideally, if good communication is established, peers can use trader chat to agree on a penalty amount to relay to their mediator.
 +
 
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Regardless of any penalty amount proposed the mediation proposal will always leave a peer with at least 5% of trade amount. This is to incentivize the peer to accept the mediation proposal rather than take the trade to arbitration where they will likely lose all of their deposit.
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''' BTC Buyer or Seller issues:'''  
  
 
{| class="wikitable"
 
{| class="wikitable"
 
|-
 
|-
−
! Buyer Issues !! Suggested Resolution
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! !! Buyer or Seller  
−
|-
 
−
| Buyer does not respond to mediator for 48 hours || Buyer loses 25% of the trade amount. Buyer retains the rest of their security deposit.
 
−
|-
 
−
| Buyer accepts trade but does not have the payment method needed (eg accepted Zelle trade but has no Zelle account) || Buyer loses 10% of the trade amount. Buyer retains the rest of their security deposit.
 
−
|-
 
−
| Buyer wants to cancel trade due to problems with bank, lack of funds, change of mind, etc || Buyer loses 20% of the trade amount. Buyer retains the rest of their security deposit.
 
−
|-
 
−
| Buyer is asking for selfie, copy of ID of seller, home address. || Buyer loses 10% of the trade amount. Buyer retains the rest of their security deposit. Seller can choose whether to provide or not. *Bisq should incentivize accounts that do not ask for any more information than necessary and penalize users that trade with banks that add for more information than necessary.
 
−
|-
 
−
| Buyer uses BTC, Bisq, Bitcoin, BTC Tx ID, etc as a payment reference || Buyer loses 25% of of the trade amount. Buyer retains the rest of their security deposit.
 
 
|-
 
|-
−
| Buyer claims they were unable to pay in time of payment window due to Bisq wallet being corrupted and needing to resync, unable to log into Bisq, other problem.  || Buyer provides evidence that they were unable to access Bisq (GitHub issue / Matrix chat etc). If unable Buyer loses 25% of the trade amount. Buyer retains the rest of their security deposit.
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| 100% || Fraud attempt: debiting of peer's account, code tampering
 
|-
 
|-
−
| Buyer uses unagreed potentially concerning payment reference that such as 'payment for services', 'house rewire', 'consultancy' || Buyer loses 10% of the trade amount. Buyer retains the rest of their security deposit.  
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| 50% || Attempting to get a peer to communicate outside of Bisq by displaying your contact info in the 'additional information' field on a cash by mail or face to face offer.
 
|-
 
|-
−
| Buyer uses unagreed innocuous payment reference that such as holiday fund, flowers without agreement, Bisq trade ID reference || Buyer loses 5% of the trade amount. Buyer retains the rest of their security deposit.
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| 25% || Not responding to a mediator within 48h
 
|-
 
|-
−
| Buyer attempts to debit sellers account using their bank details. || Buyer loses 100% of of the trade amount. Buyer retains the rest of their security deposit.
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| 25% || Bitcoin-related payment references (e; BTC, Bisq, Bitcoin...)
 
|-
 
|-
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| Buyer raises request for refund from Revolt / TransferWise due to buyer using their account to sell them Bitcoin. || Buyer loses 100% of of the trade amount. Buyer retains the rest of their security deposit.
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| 25% || Contacting peer outside of Bisq without their previous consent and/or without reasonable need
 
|-
 
|-
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| Buyer makes payment to wrong account that have previously used to trade with the seller || Buyer loses 5% of the trade amount. Buyer retains the rest of their security deposit. Seller has the option to refund buyer.
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| 20% || Cancelling a trade  
 
|-
 
|-
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| Buyer makes payment from an account with a different account number than their payment methods || Buyer loses 10% of the trade amount (If account number different but name the same). Buyer retains the rest of their security deposit
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| 20% || Requesting that payment be made from/to a different account name, without mediator's acknowledgement
 
|-
 
|-
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| Buyer makes payment from an account with a completely different name than their payment account used to take the trade || Buyer loses 25% of the trade amount. Buyer retains the rest of their security deposit.
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| 10% || Requiring personal data: ID, home address, etc. (Bisq should incentivize accounts that do not ask for any more info than necessary)
 
|-
 
|-
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| Buyer makes payment from an account with a partial different name than their payment account used to take the trade (eg only First name name or surname matches) || Buyer loses 10% of the trade amount. Buyer retains the rest of their security deposit.
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| 10% || Abusing trading peer, mediator or arbitrator during dispute process
−
|-
 
−
| Buyer takes SEPA payment and then sends payment via SWIFT, or takes SEPA payment then send via TransferWise etc ||  Buyer loses 10% of the trade amount. Buyer retains the rest of their security deposit.
 
−
|-
 
−
| Buyer takes altcoin offer and then sends altcoin with a low fee that gets held up in the blockchain.|| Buyer has the option to do CPFP or similar. If late buyer loses the following; 0-24 hours late: Buyer loses 2.5% of the trade amount., 24-48 hours late: Buyer loses 5% of the trade amount, 48-72 hours late: Buyer loses 7.5% of the trade amount, 72-96 hours late: Buyer loses 10% of the trade amount. Any payment by buyer and seller has option to refund buyer.
 
−
|-
 
−
| Buyer does not make payment in trade window  || If late buyer loses the following; 0-24 hours late: Buyer loses 5% of the trade amount., 24-48 hours late: Buyer loses 10% of the trade amount, 48-72 hours late: Buyer loses 15% of the trade amount.
 
−
|-
 
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| Buyer makes payment from an account with a different name, account number than their payment methods ||  Buyer loses 10% of the trade amount. Buyer retains the rest of their security deposit. Any late payment by buyer and seller has option to refund buyer.
 
−
|-
 
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| Buyer made a mistake they actually meant to sell not buy BTC. || If Buyer sends the mediator a message within 24 hours to inform them they meant to sell not buy BTC they will be penalized 10% of the trade amount should they not complete the trade within in the trade window. If BTC buyer has not informed mediator within 24 hours that they meant to sell not buy BTC then Buyer has the option to complete the trade within the trade window. If they fail to do this Buyer loses the following; 0-24 hours late: Buyer loses 5% of the trade amount, 24-48 hours late: Buyer loses 10% of the trade amount, 48-72 hours late: Buyer loses 15% of the trade amount, 72-96 hours late: Buyer loses 20% of the trade amount. If buyer chooses to not compelte the trade they will lose 20% of the trade amount. Buyer retains the rest of their security deposit.
 
−
|-
 
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| Buyer sends random / incorrect payment amount. || Buyer has the option to send the correct amount within the trade window. If they fail to do this Buyer loses the following; 0-24 hours late: Buyer loses 2.5% of the trade amount, 24-48 hours late: Buyer loses 5% of the trade amount, 48-72 hours late: Buyer loses 7.5% of the trade amount, 72-96 hours late: Buyer loses 10% of the trade amount. Any late full payment by buyer and seller has option to refund buyer.
 
−
|-
 
−
| Buyer alters code on their local Bisq instance to avoid paying the correct trade fees || Buyer loses the maximum amount of their security deposit.
 
 
|}
 
|}
  
  
  
−
''' BTC Seller issues:'''
 
  
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''' BTC Buyer:'''
 
{| class="wikitable"
 
{| class="wikitable"
 
|-
 
|-
−
! Seller Issues !! Suggested Resolution
+
! !! Buyer
 
|-
 
|-
−
| Seller does not respond to mediator for 48 hours || Seller loses 25% of the trade amount. Seller retains the rest of their security deposit.
+
| 100% || Payment chargeback
 
|-
 
|-
−
| Seller accepts trade but does not have the payment method needed (eg accepted Zelle trade but has no Zelle account) || Seller loses 10% of the trade amount. Seller retains the rest of their security deposit.
+
| 25% || Paying from an account with different name (as in "different person", while little variations, where it's clear payment comes for the correct person, are not penalized), seller is allowed to cancel the trade with no penalty
 
|-
 
|-
−
| Seller wants to cancel trade due to problems with bank, lack of funds, change of mind, etc || Seller loses 20% of the trade amount. Seller retains the rest of their security deposit.
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| 20% || Payment is 72+ hours late
 
|-
 
|-
−
| Seller is asking for selfie, copy of ID, home address of buyer. || Seller loses 10% of the trade amount. Seller retains the rest of their security deposit. Buyer can choose whether to provide or not. *Bisq should incentivize accounts that do not ask for any more information than necessary and penalize users that trade with banks that add for more information than necessary.
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| 15% || Payment is 48-72 hours late
 
|-
 
|-
−
| Seller claims they were unable to release BTC in time of payment window due to Bisq wallet being corrupted and needing to resync, unable to log into Bisq, other problem. || Seller provides evidence that they were unable to access Bisq (GitHub issue / Matrix chat etc). If unable Seller loses 25% of the trade amount. Seller retains the rest of their security deposit.
+
| 15% || Paying from an account with same name but different account number, seller is allowed to cancel the trade with no penalty
 
|-
 
|-
−
| Seller attempts to debit the buyer's account using their bank details. || Seller loses 100% of of the trade amount. Seller retains the rest of their security deposit.
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| 10% || Payment is 24-48 hours late
 
|-
 
|-
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| Seller raises mediation in error then completes release of BTC outside of trade window  || Seller loses the following; 0-24 hours late: Seller loses 5% of the trade amount., 24-48 hours late: Seller loses 10% of the trade amount, 48-72 hours late: Seller loses 15% of the trade amount, 72-96 hours late: Seller loses 20% of the trade amount. Seller loses 20% of the trade amount, Over 96 hours late: Seller loses 25% of the trade amount.
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| 10% || Similar, but wrong, payment method (eg. SWIFT instead of SEPA, SEPA instant instead of Wise...)
 
|-
 
|-
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| Seller accepts SEPA instant trade but is unable to receive a SEPA Instant payment at they only have a SEPA account || If BTC release occurs outside of payment window, Seller loses 2.5% of the trade amount., 0-24 hours late: Seller loses 5% of the trade amount., 24-48 hours late: Seller loses 10% of the trade amount, 48-72 hours late: Seller loses 15% of the trade amount, 72-96 hours late: Seller loses 20% of the trade amount. Seller loses 20% of the trade amount, Over 96 hours late: Seller loses 25% of the trade amount.
+
| 10% || Wrong payment amount: buyer has the option to correct the amount within the trade window, seller is allowed to cancel the trade with no penalty
 
|-
 
|-
−
| Seller does not release BTC in trade window || If late Seller loses the following; 0-24 hours late: Seller loses 5% of the trade amount., 24-48 hours late: Seller loses 10% of the trade amount, 48-72 hours late: Seller loses 15% of the trade amount, 72-96 hours late: Seller loses 20% of the trade amount. Seller loses 20% of the trade amount, Over 96 hours late: Seller loses 25% of the trade amount.
+
| 10% || Using unagreed payment reference. Any unagreed payment reference (also the trade ID) shares the same penalty. "Flowers" could be as bad as "services rendered" depending on every single case
 
|-
 
|-
−
| Seller made a mistake they actually meant to buy not sell BTC, but offer was taken.|| Seller has the option to complete the trade within the trade window. If they fail to do this Seller loses the following; 0-24 hours late: Seller loses 5% of the trade amount., 24-48 hours late: Seller loses 10% of the trade amount, 48-72 hours late: Seller loses 15% of the trade amount, 72-96 hours late: Seller loses 20% of the trade amount. Seller loses 20% of the trade amount, Over 96 hours late: Seller loses 25% of the trade amount.
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| 10% || Late payment because of low fee for altcoin tx; penalty can be reduced during mediation if buyer uses RBF or similar
 
|-
 
|-
−
|Seller alters code on their local Bisq instance to avoid paying the correct trade fees || Seller loses the maximum amount of their security deposit.
+
| 5% || Payment is up to 24 hours late
 
|}
 
|}
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''' BTC Seller:'''
 +
{| class="wikitable"
 +
|-
 +
!  !! Seller
 +
|-
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| 15% || BTC is released outside of trade window
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|}
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<!--
 +
- Release times can't be enforced, because at mediation, the last trader to accept the suggestion is the one who decides when the payout is submitted.
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- Cannot accept SEPA instant is replaced by buyer or seller's penalty "Suggest different payment method - account without mediator's acknowledgement.". This way, an instant SEPA trade could continue as normal SEPA
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- All reasons to  cancel a trade are merged, because traders will tend to give the reason that penalizes them less
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- I keep the explanation because penalizing a user because their bank asks for info is a controversial matter. I might agree with note 3 but this has been working so far.
 +
-->

Latest revision as of 07:56, 27 November 2024

Penalties

Bisq has Rules in place to make the trading process as safe and convenient as possible for all parties involved, and it is important those rules are followed by users.

Penalties are a percentage of the trade amount, deducted from the offending peer's security deposit (and when needed, also from trade amount itself) and offered as a compensation to the other peer during the Dispute resolution process The actual penalty will be up to the values detailed below, depending on security deposit % and mediator's discretion.

100% penalties are for serious violations and will always imply losing the whole amount (trade + deposit).

If two or more penalties are caused by the buyer or seller the penalty amount will be greater of the amounts. Penalties are not cumulative.

Ideally, if good communication is established, peers can use trader chat to agree on a penalty amount to relay to their mediator.

Regardless of any penalty amount proposed the mediation proposal will always leave a peer with at least 5% of trade amount. This is to incentivize the peer to accept the mediation proposal rather than take the trade to arbitration where they will likely lose all of their deposit.

BTC Buyer or Seller issues:

Buyer or Seller
100% Fraud attempt: debiting of peer's account, code tampering
50% Attempting to get a peer to communicate outside of Bisq by displaying your contact info in the 'additional information' field on a cash by mail or face to face offer.
25% Not responding to a mediator within 48h
25% Bitcoin-related payment references (e; BTC, Bisq, Bitcoin...)
25% Contacting peer outside of Bisq without their previous consent and/or without reasonable need
20% Cancelling a trade
20% Requesting that payment be made from/to a different account name, without mediator's acknowledgement
10% Requiring personal data: ID, home address, etc. (Bisq should incentivize accounts that do not ask for any more info than necessary)
10% Abusing trading peer, mediator or arbitrator during dispute process



BTC Buyer:

Buyer
100% Payment chargeback
25% Paying from an account with different name (as in "different person", while little variations, where it's clear payment comes for the correct person, are not penalized), seller is allowed to cancel the trade with no penalty
20% Payment is 72+ hours late
15% Payment is 48-72 hours late
15% Paying from an account with same name but different account number, seller is allowed to cancel the trade with no penalty
10% Payment is 24-48 hours late
10% Similar, but wrong, payment method (eg. SWIFT instead of SEPA, SEPA instant instead of Wise...)
10% Wrong payment amount: buyer has the option to correct the amount within the trade window, seller is allowed to cancel the trade with no penalty
10% Using unagreed payment reference. Any unagreed payment reference (also the trade ID) shares the same penalty. "Flowers" could be as bad as "services rendered" depending on every single case
10% Late payment because of low fee for altcoin tx; penalty can be reduced during mediation if buyer uses RBF or similar
5% Payment is up to 24 hours late

BTC Seller:

Seller
15% BTC is released outside of trade window


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