To maintain the order and security of P2P trading, the following terms serve as additional rules regarding the Security Deposit under Merchant Regulations:
1. P2P Merchant Security Deposit Rules:
To ensure the security and user experience of P2P trading, the platform reserves the right to deduct the merchant's security deposit (the "Security Deposit") under the following circumstances, after identity verification (KYC) and anti-money laundering (AML) checks are completed.
a. Scenarios for Security Deposit Deduction:
The platform may limit a merchant’s account functionality and deduct part or all of their Security Deposit if any of the following occurs:
(1) The merchant is involved in a P2P appeal dispute, and the platform determines the merchant is at fault and responsible for addressing the issue, but the merchant fails to resolve the appeal and assume responsibility for the related issues within the specified timeframe, resulting in financial losses for other users.
(2) The merchant uses the platform for money laundering, illegal or disguised foreign exchange tax evasion, arbitrage, price manipulation, malicious intent to disrupt transactions, or any other activities that violate platform rules or illegal actions.
(3) The merchant recruits partners using the platform's brand, charges intermediary fees, posting fraudulent ads, or engages in activities that maliciously mislead users and cause financial losses, or any behavior that negatively impacts the platform's rights, interests, or reputation.
(4) The merchant allows others to use third-party bank cards or trading accounts, or engages in fraud, money laundering, or other illegal or criminal activities, harming the platform, users, or third parties.
(5) If there are P2P orders under appeal for any reason, the merchant is responsible for any liabilities determined in relation to the appealed orders. If the merchant cannot be contacted within a reasonable time, the platform is not responsible for any changes to the Security Deposit due to responsibility allocation.
(6) The merchant violates any other platform rules or guidelines.
(7) The merchant’s payment or receipt accounts are frozen due to personal actions, and the merchant fails to report to the platform within the required timeframe.
(8) The platform may, at its discretion, deduct the merchant’s Security Deposit for any other situation resulting from the merchant’s fault.
(9) After the platform deducts part or all of the merchant's Security Deposit according to the Merchant Regulations, the merchant must replenish the full security deposit. Failure to do so within the specified time will result in the removal of the merchant's status.
b. The actual amount of the Security Deposit deduction will be determined by the platform's risk management evaluation, based on the impact and the corresponding compensation amount.
In the case of the following special circumstances, the platform reserves the right to automatically deduct the entire Security Deposit:
(1) The platform has reasonable evidence that the merchant is directly involved in or assisting with fraud, money laundering, or other illegal or criminal activities.
(2) The merchant is found to be linked to fraud or money laundering activities when conducting cross-platform transactions on other platforms.
(3) The merchant is found to have deposited illegal assets (e.g., stolen funds or account fraud proceeds) into the platform.
(4) The merchant’s payment causes a user’s receiving account to be frozen, and during the verification process, the merchant is found to be involved in submitting fraudulent verification information.
(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 receiving and payment accounts have been frozen multiple times without responding to the platform’s requests for reporting, or the freezing causes significant losses to other users on the platform.
(7) After receiving the merchant’s request to adjust the Security Deposit, the platform will process the refund within 3-5 business days if the merchant meets the conditions for security deposit adjustment. This obligation is subject to verification of the merchant’s trading history and evaluation in accordance with relevant policies.