1. Introduction
This P2P Merchant Security Deposit Agreement (hereinafter referred to as the"Agreement") sets forth the rules and requirements for all merchants to remit a security deposit in order to obtain and maintain merchant privileges on the platform. The purpose of this Agreement is to ensure a fair trading environment, protect users from potential financial losses, and maintain the integrity of the platform's P2P ecosystem. By applying for or maintaining merchant status, you (hereinafter referred to as the "Merchant") agree to comply with this Agreement. Failure to adhere to this Agreement may result in penalties, including suspension or revocation of merchant privileges.
2. Security Deposit Requirement
All new P2P merchants are required to remit a security deposit as a prerequisite for obtaining and maintaining advertisement posting privileges. Existing merchants (registered before March 6, 2025) will be granted a grace period until March 13, 2025, to fulfill this requirement.
3. Consequences of Non-Payment (Existing Merchants)
Existing merchants who fail to remit the required security deposit within the designated grace period will have all active advertisements removed from the platform, and their merchant privileges will be suspended. Such users may continue trading on the platform as regular users but will not enjoy merchant-specific privileges.
4. Security Deposit Amount
The amount of the required security deposit is determined solely by the platform. The platform will set a default initial security deposit amount, which may be adjusted at any time. The amount may be varied for each Merchant, and the platform may revise the amount of security deposit and require you to remit additional security deposit from time to time. The timing to remit security deposit is also determined by the platform solely.
5. Payment of Security Deposit
The security deposit must be paid from the merchant’s available balance in their spot account on the platform. Merchants with insufficient balance in their spot account will not meet the security deposit requirement and will not gain merchant privileges until sufficient funds are deposited and payment is completed.
6. Security Deposit Management
6.1. Custody of Security Deposits
6.1.1. All security deposits remitted by merchants will be held in a dedicated system account separate from the platform’s operating funds. All disbursements and deductions related to security deposits will be processed exclusively through this dedicated system account.
6.2. Adjustment of Security Deposit Amount
6.2.1. The platform reserves the right to adjust the required security deposit amount. If an increase in the required amount occurs, existing merchants will be granted a grace period to remit any incremental amount.
6.2.2. Merchants will be notified of such adjustments via email or in-platform notifications. If a decrease in the required amount occurs, previously remitted excess amounts will not be refunded.
6.3. Individualized Security Deposit Requirements
6.3.1. The platform reserves the right to establish individualized security deposit requirements for specific merchants at its sole discretion.
7. Cancellation of Merchant Status
Merchants may apply to cancel their merchant status on the platform. Upon receipt of such an application, the platform will review whether the following conditions are met:
- The merchant has no outstanding uncompleted transactions;
- The merchant has no unresolved disputes or appeals; and
- The merchant’s P2P trading privileges are not subject to any restrictions.
- If all conditions are satisfied, the merchant’s status will be terminated;
After deducting any applicable amounts pursuant to Section 8, any remaining balance of the security deposit will be refunded to their spot account following a holding period determined by the platform. Merchants acknowledge and agree that, even after cancellation of their merchant status, all historical transaction data, communication logs, dispute records, and payment method information associated with their account will remain accessible on the platform.
8. Reapplication for Merchant Status
Merchants who have previously canceled their status may reapply for merchant status by remitting a new security deposit. The required amount must not be less than what was required at the time their previous status was canceled.
9. Security Deposit Deductions
9.1. In cases where a user files a complaint against a merchant:
9.1.1. If the Platform determines that the merchant has violated platform rules and caused financial losses to a user, funds may be deducted from the merchant’s security deposit as compensation for such losses;
9.1.2. If the Platform determines that the merchant has obvious fraudulent intent, funds may be deducted from the merchant’s security deposit in accordance with the “P2P Appeal and Activity Handling Rules”, even though no actual losses are caused due to active interception of the platform;
9.1.3. The deduction amount shall be determined solely by the Platform but shall not exceed the total amount of the merchant’s security deposit;
9.1.4. The platform reserves the right to determine, at its sole discretion, the standards and methods for calculating deductions from the security deposit based on the circumstances of each case.
9.1.5. All deductions will be processed through the dedicated system account holding merchants’ deposits.
10. Policy Modifications
The platform reserves the right to modify this Agreement at any time without prior notice. Any changes will take effect upon publication on [Platform Website/Terms Page]. Merchants are encouraged to review this Agreement periodically for updates.
11. Contact Information
For questions or concerns regarding this Agreement or your obligations under it, please contact us at: support@coinex.com