# Rational behind the escrow deposits **URL:** \ **Category:** Trading\ **Created:** [May 3, 2018, 1:40pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383 "2018-05-03T13:40:18Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![torte](https://bisq.community/letter_avatar/torte/32/6_22734026db12803ebb3e059622ac3534.png) [@torte](https://bisq.community/u/torte)\ **Post date:** [May 3, 2018, 1:40pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/1 "2018-05-03T13:40:18Z")
Wonder about the values of the deposits for buyer and seller. Her one example. I was the BTC buyer (against fiat) and had to deposit 10mBTC for a trading amount of around 13mBTC. This was ok for me. The BTC seller only had to deposit 3mBTC. Why not more? The seller could run away with my fiat and I’d have a loss of nearly 75%, in this case 10mBTC. Wouldn’t it be more fair if the seller deposits as well an amount of at least 10mBTC? Thanks for your views or hints in case I can influence this while trading. ---
**Author:** ![alexej996](https://bisq.community/user_avatar/bisq.community/alexej996/32/491_2.png) [@alexej996](https://bisq.community/u/alexej996)\ **Post date:** [May 3, 2018, 4:12pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/2 "2018-05-03T16:12:33Z")
Seller doesn’t only put his security deposit, like the buyer does in the multisig. He also locks the trade amount in BTC into a multisig. So if you provide a proof of payment to the arbitrator, two of you can unlock these bitcoins, as well as his security deposit and give to you. This way you get the trade amount and his security deposit for your troubles. It is also good to mention that there really isn’t a security deposit amount that is set in stone. When you are crating an offer, you can adjust those values to whatever you are comfortable with. ---
**Author:** ![torte](https://bisq.community/letter_avatar/torte/32/6_22734026db12803ebb3e059622ac3534.png) [@torte](https://bisq.community/u/torte)\ **Post date:** [May 3, 2018, 8:47pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/3 "2018-05-03T20:47:12Z")
Ok got it. This makes sense. Thank you! ---
**Author:** ![Hugues](https://bisq.community/letter_avatar/hugues/32/6_22734026db12803ebb3e059622ac3534.png) [@Hugues](https://bisq.community/u/Hugues)\ **Post date:** [December 18, 2019, 6:28pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/4 "2019-12-18T18:28:43Z")
If I didn’t misunderstood it works like this. I want to buy BTC from some seller. I first have to make a security deposit in BTC before I can do a trade. What if I don’t have BTC? ---
**Author:** ![MnM](https://bisq.community/user_avatar/bisq.community/mnm/32/257_2.png) [@MnM](https://bisq.community/u/MnM)\ **Post date:** [December 29, 2019, 2:30pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/5 "2019-12-29T14:30:54Z")
In Bisq, you need btc to buy btc. Btc is what makes a trade secure for both trading peers. ---
**Author:** ![Taxfree](https://bisq.community/letter_avatar/taxfree/32/6_22734026db12803ebb3e059622ac3534.png) [@Taxfree](https://bisq.community/u/Taxfree)\ **Post date:** [December 29, 2019, 11:27pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/6 "2019-12-29T23:27:15Z")
The security deposits are overvalued and pettifogging. Everything would be the same or better without them. Ridiculous to have them for systematic threats and punishments and complex arbitrator fees. Where is the user friendliness and trust in people? Better to smoothly refund/release bitcoins than running a blame game if transactions are not completed. No wonder no one wants to trade in Bisq. ---
**Author:** ![MnM](https://bisq.community/user_avatar/bisq.community/mnm/32/257_2.png) [@MnM](https://bisq.community/u/MnM)\ **Post date:** [December 30, 2019, 10:59am UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/7 "2019-12-30T10:59:59Z")
I would never trade online with an unknown peer without security deposits. ---
**Author:** ![Taxfree](https://bisq.community/letter_avatar/taxfree/32/6_22734026db12803ebb3e059622ac3534.png) [@Taxfree](https://bisq.community/u/Taxfree)\ **Post date:** [December 30, 2019, 2:46pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/8 "2019-12-30T14:46:46Z")
Then you just don’t rely on the refund and release mechanism i.e. meditation/arbitration. And why should one when they steal the deposits? It is a negative feedback on required support cases. Meditation/arbitration should be for the required safety in a neutral manner, not as a threat for wrongdoing. Security deposit=support protection? ---
**Author:** ![Taxfree](https://bisq.community/letter_avatar/taxfree/32/6_22734026db12803ebb3e059622ac3534.png) [@Taxfree](https://bisq.community/u/Taxfree)\ **Post date:** [January 6, 2020, 7:28am UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/9 "2020-01-06T07:28:32Z")
> The security deposits are overvalued and pettifogging. Everything would be the same or better without them. Ridiculous to have them for systematic threats and punishments and complex arbitrator fees. Where is the user friendliness and trust in people? Better to smoothly refund/release bitcoins than running a blame game if transactions are not completed. No wonder no one wants to trade in Bisq. > > > \> \_This is a Bisq Network proposal. Please familiarize yourself with the \[submis…sion and review process\](https://docs.bisq.network/proposals.html).\_ > > > I propose that the minimum security deposit for both buyer and seller should be increased to at least 15%. This will increase the skin in the game for the traders and incentivize them to quickly finalise the trade themselves without going into mediation which is very costly for the DAO. In addition there will be fewer future trades. As is it now a standard trade is in fact an option for the buyer and a cheap one at that. This is not sustainable in the longer run. Sophisticated traders will know that they should increase the security deposit in volatile times, but most traders are not that sophisticated. ---
**Author:** ![ZeroTaxfree](https://bisq.community/letter_avatar/zerotaxfree/32/6_22734026db12803ebb3e059622ac3534.png) [@ZeroTaxfree](https://bisq.community/u/ZeroTaxfree)\ **Post date:** [January 19, 2020, 7:09pm UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/10 "2020-01-19T19:09:02Z")
So let’s do the best. Make the trade an option instead of future (cancellable until deposit tx). Remove meditation as planned (?) AND the security deposits. Release/refund by arbitration without hassle. ---
**Author:** ![ZeroTaxfree](https://bisq.community/letter_avatar/zerotaxfree/32/6_22734026db12803ebb3e059622ac3534.png) [@ZeroTaxfree](https://bisq.community/u/ZeroTaxfree)\ **Post date:** [January 20, 2020, 6:16am UTC](https://bisq.community/t/rational-behind-the-escrow-deposits/5383/11 "2020-01-20T06:16:22Z")
1. Option instead of future trade 2. No security deposit 3. 2-of-3 multisig escrow for smooth refund/release Hassle free trade. Optimized for growth. Bonus: No need for “refund agent” reimbursement.