Difference between revisions of "Reputation"
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The security model of Bisq Easy (a Bisq 2 trade protocol) is based on the seller's reputation. | The security model of Bisq Easy (a Bisq 2 trade protocol) is based on the seller's reputation. | ||
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| − | + | As the buyer needs to send the fiat payment first in the trade process, the seller needs to provide reputation so that the buyer can trust the seller to send the bitcoin. | |
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| + | From Bisq 2 version 2.1.1 the maximum recommended trade amount depends on the seller's reputation. The higher their reputation the higher the possible trade amount (up to a ceiling of the bitcoin amount equivalent to 600 USD). Version 2.1.1 also introduces a change in the reputation score calculation, so that burned BSQ and bonded BSQ get twice their value in the course of the first year. | ||
## Reputation based trade limits | ## 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 | + | A seller can take offers up to the amount derived from their reputation score. |
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| + | The formula is: `Reputation score / 200 = max. trade amount in USD`. In other words, for each USD the seller needs 200 reputation points. A reputation score of 30000 enables trades up to 150 USD (converted to the chosen fiat currency). | ||
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| + | For small trade amounts of the value 25 USD and below, this restriction is lifted. This is motivated by the lower risk of such small amounts and to give users more flexibility. | ||
| − | + | The reputation based trade limits means a buyer creating an offer can be sure 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's who do not want to allow users with no reputation to be able to take their offer should create offers 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. | 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. | ||
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## Min and max amounts | ## 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 | + | 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 chosen currency). This avoids fluctuations in case of price volatility. |
| − | ## Min. required | + | ## Min. required reputation score |
| − | Prior to v2.1.1 users could set a min. required | + | Prior to v2.1.1 users could set a min. required reputation score for sellers in the settings, or use the recommended default value (30000). This has been removed in v2.1.1. as the amount based approach is a better way to handle risk. |
## Transition and backward compatibility with prior versions: | ## Transition and backward compatibility with prior versions: | ||
| − | As long there are users who run versions | + | As long there are users who run versions prior 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 | + | 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 penalty. The mediator can assist in doubt. |
| − | Buy offers created with v2.1.1 have set the min. required reputation score to | + | Buy offers created with v2.1.1 have set the min. required reputation score to 30000 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 30000 reputation score to take that buy offer. |
Revision as of 16:11, 3 October 2024
The security model of Bisq Easy (a Bisq 2 trade protocol) is based on the seller's reputation.
As the buyer needs to send the fiat payment first in the trade process, the seller needs to provide reputation so that the buyer can trust the seller to send the bitcoin.
From Bisq 2 version 2.1.1 the maximum recommended trade amount depends on the seller's reputation. The higher their reputation the higher the possible trade amount (up to a ceiling of the bitcoin amount equivalent to 600 USD). Version 2.1.1 also introduces a change in the reputation score calculation, so that burned BSQ and bonded BSQ get twice their value in the course of the first year.
- 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 reputation score of 30000 enables trades up to 150 USD (converted to the chosen fiat currency).
For small trade amounts of the value 25 USD and below, this restriction is lifted. This is motivated by the lower risk of such small amounts and to give users more flexibility.
The reputation based trade limits means a buyer creating an offer can be sure 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's who do not want to allow users with no reputation to be able to take their offer should create offers 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.
- 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 chosen currency). This avoids fluctuations in case of price volatility.
- Min. required reputation score
Prior to v2.1.1 users could set a min. required reputation score for sellers in the settings, or use the recommended default value (30000). This has been removed in v2.1.1. as the amount based approach is a better way to handle risk.
- Transition and backward compatibility with prior versions:
As long there are users who run versions prior 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 penalty. The mediator can assist in doubt.
Buy offers created with v2.1.1 have set the min. required reputation score to 30000 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 30000 reputation score to take that buy offer.
