These terms supplement the P2P Merchant Management Rules regarding security deposit assets.
1. Security Deposit Assets
To ensure secure transactions, the platform reserves the right to deduct all or part of a P2P merchant’s "security deposit" under the following circumstances after completing identity verification (KYC).
1.1 Circumstances for Security Deposit Deduction
1.1.1 The platform reserves the right to deduct part or all of a merchant's security deposit if any of the following situations occur:
(1) The merchant is involved in a transaction dispute, and the platform determines that the merchant is at fault or should bear responsibility. If the merchant fails to cooperate or assume responsibility within a reasonable timeframe, resulting in losses/damages to other users, the platform may deduct the security deposit accordingly.
(2) The merchant engages in money laundering, illegal foreign exchange evasion or arbitrage, malicious price manipulation, disruption of transaction orders, or other illegal/criminal activities that violate platform policies.
(3) The merchant misuses the platform’s brand to recruit accomplices, charge intermediary fees, conduct fraudulent marketing, or create misleading associations that harm the platform’s rights, interests, or reputation.
(4) The merchant allows others to use third-party bank accounts or trading accounts for transactions, engages in fraud, money laundering, or other illegal/criminal activities, causing damage to the platform, users, or third parties.
(5) If a merchant has pending appeal orders that require processing, the merchant must assume the responsibility determined by the platform after review. If the merchant cannot be contacted within a reasonable time, the platform is not responsible for any further liabilities.
(6)The merchant violates other platform rules or regulations.
(7) The merchant's payment or receiving account is frozen due to their actions or inactions, and they fail to report the incident to the platform within the required timeframe.
(8) Any other circumstances where the platform reasonably determines that the merchant's actions require security deposit deduction.
1.1.2 If the platform deducts all or part of a merchant's security deposit based on the Merchant Management Rules, the merchant must replenish the deducted amount to maintain the required security deposit balance.
1.2 Determination of Security Deposit Deduction Amount
If any of the following serious violations occur, the platform reserves the right to automatically deduct the entire security deposit:
(1) The platform has reasonable evidence proving that the merchant is directly or indirectly involved in fraud, money laundering, or other illegal/criminal activities.
(2) The merchant is found to have engaged in cross-platform transactions related to fraud or money laundering.
(3) The merchant has transferred illegal assets (e.g., stolen funds) into the platform.
(4) The merchant’s payment leads to a user’s receiving account being frozen, and the merchant is found to have provided fraudulent verification materials.
(5) The merchant’s payment causes a user’s receiving account to be frozen, and the merchant refuses to cooperate in resolving the issue.
(6) The merchant’s payment/receiving accounts are frequently frozen but are not reported to the platform as required, or the frozen accounts result in significant losses for other users on the platform.
1.3 Cancellation of Merchant Status
Merchants can apply to cancel their merchant status and request a refund of their security deposit through the merchant dashboard.
Once the application is approved by the platform, the security deposit will be refunded to the user’s spot account within approximately 48 hours.