⏪Safety layers
Always stay safe with your 3 layers safety system for collateral based transactions
In a nutshell
Sometimes collateral based deal may not go as expected (for example, due to bank transfer delays). For this purpose we have designed the 3-layers safety system:
Layer 1. Basic deal collateral requirements as stated on previous page. This first layer already should eliminate an incentive to even trying to scam people almost fully.
Layer 2. Trustless disputes system. This layer is also based on game theory and time-based formulas to incentivize counterparties to resolve a dispute as soon as possible. More details can be found in the trustless disputes system design paper.
Layer 3. Automated settlement. You may think, if there is still an auto settlement layer exists, why is collateral needed at all? While the regular auto settlement design requires a payment system to have an official API that is easily available for a user to guarantee stability for non-stop work and smooth experience. Some payment systems may not have it, but as the majority, they have unofficial API. Unofficial API can be used for single-time auto settlement in case of counterparties still unable to reach a consensus during the first 2 safety layers. It means that users may sacrifice UX at this point and extract unofficial API token to settle the dispute. Keep in mind that majority of users will not get to this stage and will settle payments at first, or sometimes second safety layer.
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