P2P Trading Collateral Deposit System: Usage and Unfreezing Instructions

Collateral deposits are a key protection tool for the P2P platform. They are required from certain categories of users to maintain the security of trading operations and guarantee the fulfillment of obligations to counterparties.

Why is a collateral deposit needed in P2P trading

A collateral deposit is required in several cases. First, the system attracts it from users who, based on a comprehensive assessment, are classified as potential risk categories. Second, it must be provided by all applicants for verified merchant (VM) or block-merchant (BM) status.

Depositing and subsequently freezing this amount gives the platform a mechanism to compensate counterparties in case of disputes. While the collateral deposit is frozen on the financial account, the user has the right to post ads and trade. If necessary, funds can be used to pay compensation to the affected party.

In certain situations, the platform may require additional documents for a more in-depth account verification.

How the freezing and compensation mechanism works

The amount of the collateral deposit remains frozen on the user’s financial account throughout their activity on the P2P platform. If, during dispute resolution or compensation payouts, the main assets are insufficient, the system draws from the frozen collateral deposit funds.

After using the deposit for compensation, a key restriction arises: if the remaining amount falls below the required minimum, the user loses the right to publish new ads until their balance is replenished to the required level.

Continuous monitoring and conditions for unfreezing

For users flagged as potential risks, the platform conducts ongoing analysis of account quality in real time. The system records all indicators: order completion rate, rating, payment processing speed, number of complaints and appeals.

Once the profile demonstrates stable metrics and meets the criteria for unfreezing, the user is automatically released from the requirement to hold a collateral deposit. The current status can be tracked directly in the platform interface on the collateral deposit management page.

For verified merchants (VM) and block-merchants (BM), the situation is different. They must constantly maintain a collateral deposit in their account as a condition of their status. If funds are unfrozen, the merchant status is automatically revoked, and a new application must be submitted.

Two strategies for fund release

For users classified as potential risks, the platform offers two ways to lift the freeze on the deposit.

Strategy 1: Improving trading activity quality

Users can actively enhance their account metrics, which involves:

• Minimizing unauthorized order cancellations and increasing order fulfillment percentage
• Developing positive relationships with counterparties: being polite, patient, and responding quickly to inquiries
• Processing transactions promptly and sending funds or payments without delays
• Actively collecting positive reviews and minimizing complaints, appeals, and blocks from other traders
• Strictly adhering to all P2P trading norms to ensure safety and fairness on the platform

As a positive history accumulates, the rating increases, the system recognizes this, and you gain the right to post ads without a collateral deposit.

Strategy 2: Submitting a manual unfreeze request

Users in the risk group, as well as verified merchants (VM) and block-merchants (BM), have the right to manually request the unfreezing of their collateral deposit. When submitting a request, the platform may require additional documents. Notifications about the need to provide documents are sent via email and system alerts. The verification results will be communicated within 48 hours after all required documents are submitted.

Conditions and process for unfreezing on the P2P platform

To successfully unfreeze the collateral deposit, the following conditions must be met:

1. No active orders in processing on the account
2. No open appeals or disputes
3. All previous orders must be fully completed before applying
4. The account must not be flagged as risky at the time of the request
5. Remember that unfreezing automatically revokes your right to post ads on the P2P platform

When your application is reviewed, the system will perform a final check, and if additional documents are needed, you will have the opportunity to provide them. Written instructions and upload links will appear on your personal collateral deposit management page.

What happens to the deposit after it is unfrozen

When you decide to unfreeze your collateral deposit, it is important to understand the expected outcome. If during the freezing period you did not commit any fraudulent actions and your activity did not cause losses to counterparties, your deposit will be returned in full.

However, if the system detects evidence of fraud, the process differs. First, the collateral deposit is used to compensate affected counterparties, and the account is blocked for 90 days for investigation and possible additional compensation. You can submit a new unfreeze request only after this period.

If losses occurred due to reasons unrelated to fraud (e.g., technical failures or other force majeure circumstances), the necessary part of the collateral deposit will still be used for compensation, but the account will not be subject to prolonged blocking.

Upon unfreezing, you will receive an amount equal to the actual remaining balance of the collateral deposit after all compensations. For example, if you deposited 1000 USDT but 200 USDT was used for compensation, you will receive 800 USDT back to your account.