<p></p>
<blockquote>
<p>The problem is that buyers know they'll get 25% of trade amount as standard penalty from sellers, buyers won't accept any worse deal with sellers.</p>
</blockquote>
<p>25% would only be in cases where seller has not sent BTC, or has sent BTC 3 days late. In those cases I think buyer should expect 25% of trade amount as a standard penalty.</p>
<p>Problem with 2% trade penalties is the volatility of BTC price. If as above seller is 3 days late releasing funds BTC price could have moved by more than 2%. I think penalties should not be associated to BTC price movement but instead fixed to late payment / release or BTC funds.</p>

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