Increased Security Deposit to Unlock Higher Buyer Limits

[HenrikJannsen]

Increased Security Deposit to Unlock Higher Buyer Limits

Overview

New buyers start with restricted trade amount and trade rate limits.
This proposal allows them to voluntarily raise the deposit up to 100%, unlocking higher trade amounts and higher allowed trade frequency within the rate-limit system.

As this is optional it does not increase the entry hurdle for users who have only small amount of Bitcoin. They could also use Bisq Easy for getting more Bitcoin without such restrictions.

Mechanism

1. Buyer-Selectable Deposit Level

• Default: 25% deposit → baseline limits
• Optional upgrade: 100% deposit → expanded limits

2. Effects on Buyer Limits

Increasing the security deposit provides two benefits:

a) Higher Maximum Trade Amount

• 25% deposit → 250 USD
• 100% deposit → 500 USD

b) Higher Trade Rate Limit (per 24h)

• 25% deposit → 1 trade / 24h
• 100% deposit → 2 trades / 24h

3. Fraud-Mitigation Rationale

• A scammer using a stolen bank account must lock up their own capital to raise limits.
• A stolen bank account scammer still risks that during the trade the fraud gets detected or that the peer opens mediation or arbitration and delay the trade process, thus increasing the risk of detection and with that loss of the deposit.
• A 100% deposit greatly increases the cost of attempting fraud.
• Honest buyers can progress faster by committing more stake.

Summary

Allowing new buyers to raise their security deposit to 100% gives them:

• higher trade amounts
• higher allowed trade frequency

while simultaneously improving fraud resistance by requiring substantial collateral for elevated privileges.

Note: This is an AI generated summary

[suddenwhipvapor]

"New buyers" are defined as such when their account is not yet signed and matured?

[HenrikJannsen]

Ah ChatGpt got a bit too creative... I just edited it. I was just meant the default state for buyers who have not lifted their limits by any of the options.

[HenrikJannsen]

For now it is not considered to implement that. We will use static 25% deposit for buyer and seller and make no difference between fiat and altcoin.
25% gives already better security as the 15% in Bisq 1 and with Bisq Easy users who have not enough Bitcoin have an alternative.
Keeping it static reduce UX complexity and avoids fragmentation of market.