Security Deposit & Guarantee Transaction Guide
Learn about Cryptome Pay's security deposit mechanism and how it enhances transaction trust
1. Overview
Cryptome Pay provides a bond-based transaction guarantee mechanism designed to enhance trust between buyers and sellers. This mechanism does not involve platform custody of funds - transaction payments are always handled directly between the parties. The platform only uses security deposit constraints and automated rules to provide limited risk mitigation and compensation support in case of default or disputes.
Important Notice
The security deposit guarantee mechanism is a credit enhancement tool, not a full insurance or fund custody service.
2. What is a Guarantee Transaction?
A guarantee transaction means the merchant pre-deposits a certain amount as a performance bond, with each transaction reserving a portion of the deposit based on risk level.
Pre-deposit Bond
Merchant deposits funds in advance as performance guarantee
Transaction Reservation
Each transaction reserves a portion based on risk level
Auto Release
Reserved amount is automatically released upon completion
Breach Deduction
Deposit is deducted according to rules in case of default
Note: The security deposit is not the transaction payment and does not equal a full compensation guarantee.
3. Platform Role & Boundaries
Cryptome Pay's role in guarantee transactions is clearly defined:
Platform Provides
- Technical rules and infrastructure
- Security deposit enforcement and automation system
Platform Does NOT
- Handle transaction fund collection or payment
- Act as arbitrator or adjudicator
All security deposit actions are executed based on pre-set, transparent rules.
4. How is the Deposit Used?
Account-Level Deposit
- Security deposits are managed at the merchant account level
- A single deposit can be reserved by multiple transactions simultaneously
- Available deposit = Total deposit − Reserved amount
Reservation Rules
Each transaction calculates the required reservation based on these factors:
Once an order is created, the reserved deposit amount is frozen until the transaction is completed or closed.
5. Deposit Release Mechanism
Reserved deposit amounts are released under the following conditions:
Buyer Confirmation
Buyer actively confirms transaction completion
Auto Settlement
Transaction auto-settles after 14 days without disputes
Milestone Confirmation
In staged transactions, completion of milestones
Once released, the deposit is returned to the merchant's available balance.
6. Default & Compensation
In cases of clear default or failure to deliver:
- Platform deducts from the reserved deposit according to established rules
- Deduction amount does not exceed the transaction's reserved deposit amount
- Compensation scope is defined by rules and does not guarantee full transaction amount
Important: The platform does not guarantee full compensation of transaction amounts.
7. Dispute Resolution
When a dispute occurs:
- Transaction status is marked as "In Dispute"
- Auto-settlement process is paused
- Platform does not actively adjudicate transaction facts
Resolution Methods
- Both parties reach agreement and submit settlement confirmation
- Auto-settlement based on time or delivery status where rules permit
8. Risk Warning
Merchants should fully understand the following risks:
- The guarantee mechanism only reduces transaction risk - it is not insurance or custody
- Deposits may be deducted due to defaults, disputes, or abnormal trading behavior
- Merchants should control transaction volume to ensure deposit levels match business scale
9. Updates & Changes
Cryptome Pay reserves the right to optimize and adjust security deposit rules within reasonable limits. Any rule changes will be announced through official channels before taking effect.
10. Summary
The security deposit guarantee mechanism aims to:
Enhance merchant credibility
Reduce transaction disputes
Provide verifiable risk mitigation
This mechanism does not change the ownership or flow of transaction funds, nor does it constitute any form of fund custody.
To view deposit requirements, risk levels, or account status, please visit the Merchant Dashboard