[bisq-network/bisq] How to calculate trade penalties? (#5324)

[pazza]

Hi @Conza88 

My thoughts on your comments are:

> **Buyer does not respond to mediator for 48 hours** = why? He doesn't give AF? Did not notice notification? Was away with RL? Or options trade and now quiet about it. If any intent becomes apparent/obvious that there's ill will etc.

Who knows why they have not responded. In any case they should lose 25% of deposit amount. Same for buyer or seller that is unresponsive. I would not want to ascertain if there is ill will or not. Either way they lose the 25%. Only exception is if there is a bug with Bisq that they can prove at a later date with arbitrator.

> **Buyer is asking for selfie, copy of ID of seller, home address.** = there's been times where the other party did not setup Transferwise correctly (set one currency as default), so this was getting asked. I'd pass that on and help them fix it. I get that this is different.

I think if any of the above info is needed it should be provided within the payment method. Eg TransferWise US would require address of users due to US regulations imposed on banks, same if ACH or Wire Transfer US was used.  If the above info is not required then traders requesting it should be penalized. For example Bisq should avoid having traders using the platform that are registered in their home country as crypto traders and can take payment from users they have KYD'd. This behavior is prevalent on other P2P exchanges. 

> **Buyer uses BTC, Bisq, Bitcoin, BTC Tx ID, etc as a payment reference** = loose lips sink ships. 25%? I'm inclined to say, not only are you dead to me, that person should lose it all. Seriously. You put others accounts in jeopardy as likely what happened with TW.

Haha, yes I agree with this one I would be happy for them to lose 100% of their security deposit and any trade amount. I think in discussion others felt it was harsh.

> **Buyer uses unagreed potentially concerning payment reference that such as 'payment for services', 'house rewire', 'consultancy'** = Haha, yes. Hence need to improve comm's/notifications for traders (not just agents).
> **Buyer uses unagreed innocuous payment reference that such as holiday fund, flowers without agreement.** = this is 5%, seen as less worse than the above for 10%? Because looks like business orientated above vs. personal?

Yes, the first one to me implies the other party is attempting to claim their BTC purchase as an expense so they can off set it against tax. Whatever they want to do is up to them but they should not implicate their counterparty. Sellers do not want to have to explain to their bank why they are receiving payment for invoices etc in a personal or business account. The trade is not a payment for a service it is for BTC. Second part is less of an issue and is fine if communicated and agreed prior to sending payment. 

> **Buyer attempts to debit sellers account using their bank details**
> **Buyer raises request for refund from Revolt / TransferWise due to buyer using their account to sell them Bitcoin.** = buyer losing 100% trade, but keeps security deposit. I'd also suggest losing security deposit.

The above are what the mediators would propose. There needs to be some funds remaining for the buyer to accept mediation. If seller is not happy with buyer not losing everything they can take it to arbitration and make a case for this.

> **Buyer does not make payment in trade window** = don't want to incentivise escalations. Would preface if no comms from willing to wait. e.g. TW transfer and went 4 days instead of 1, through no fault of my own. Other was ok to wait, but if this existed, might have wanted to raise to get %.

Payment method should be set a maximum time amount. TW has been updated to 4 days. I think most of the reasons for late payment can be attributed to buyer not having funds available or buyer not having payment account set up correctly. Eg they see a TW offer they like, register for TW but fail to pass KYC in time to make payment. Meanwhile they have set up an account on Bisq and accepted the offer. Not having funds, and not having an account able to make payment should both be penalized. 

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