Is the penalty applied to test orders or rate inquiries?

No. The penalty is only applied once the request is officially submitted or when both parties (customer and exchange) approve the creation or acceptance of the order.

What if a party fails to fulfill their commitment due to uncontrollable reasons (e.g., internet outage or banking issues)?

In such cases, the platform allows submission of documentation, and the matter is reviewed by the monitoring team. If the reasons are approved, the penalty will not be enforced.

Can users view the penalty history of another user?

Yes. This information is available in the transaction history and user trust score, and it influences the exchange's decision to accept future orders.

If an order is canceled by mutual agreement, will the penalty still apply?

No. If both parties agree to cancel the order and register it in the system, no penalty is applied and the frozen amount is released.

Why does part of the penalty go to EZDEX?

Because the monitoring team and systematic processing infrastructure require human and technical resources, part of the penalty helps cover these operational costs.

Do all orders carry delay or non-fulfillment penalties?

No. Only those orders where a delay or failure imposes responsibility, financial, or time-related costs on exchanges will incur such penalties.

Understanding Penalty for Delays and Commitment Breaches on EZDEX

Kate Hansen

Published:2025-07-01

Updated:2025-07-24

Read time :3 Minutes

The Delay Penalty, utilized for the majority of fiat deposit or withdrawal transactions, is a value based on order value, paid as assurance to both parties in the transaction.

At EZDEX, adhering to time commitments and executing transactions on time are among our core principles and fundamental values. In the financial space, even the slightest delay can lead to serious consequences for either party involved in a transaction. Therefore, to maintain trust, transparency, and enhance the security of exchanges, we have established a policy titled “Penalty for Delay or Failure to Fulfill Commitment.”

What is the Penalty for Delay or Failure to Fulfill Commitment?

This penalty is an amount equal to 1% of the total order value, which is frozen as a "Delay or Commitment Failure Penalty" in the account of each party (the exchange and the customer).

For deposit orders, this is typically calculated as 1% of the requested amount in Tether (USDT). For withdrawal orders, the penalty is in the same asset as the withdrawal. This penalty is shown to both the customer and the exchange before final confirmation of order creation or acceptance.

This policy applies to the following order types:

Cash/Bank Deposits

Cash/Bank Withdrawals

If either party fails to meet their obligations within the defined time window, the penalty amount is automatically divided between the other party and the platform according to the following rules:

50% is paid to the affected party as compensation
50% goes to EZDEX as a processing and review fee

The time commitments are defined by the customer. However, the customer must take into account multiple factors when setting the time window:

The requested amount, the time and date of the request, business hours of exchanges in the origin or destination country, business days and holidays, and banking deposit/withdrawal cycles are all crucial when determining the time commitment.

If both parties fulfill their commitments within the defined time, the frozen amount is returned in full without deductions.

Order Type	Exchange Commitment	Customer Commitment
Cash Deposit	Provide address on time	Deliver cash to the provided address
Bank Deposit	Provide bank account on time	Upload deposit receipt in user panel
Cash Withdrawal	Provide in-person address or courier details on time	Pay cash on time (by exchange)
Bank Withdrawal	Upload bank payment receipt on time	Confirm receipt in system (by customer)

💡 Simple Example:

Let’s assume a customer submits a bank deposit order for $1000. In this case:

10 USDT (1%) is frozen in the customer’s wallet
Once the order is confirmed by the exchange, an amount equivalent to $1000 from the exchange’s guarantee deposit is frozen
If both parties complete the order correctly and on time, both frozen amounts are released in full, and each party's wallet is updated accordingly based on the transaction type
In case of a breach, the penalty amount is settled systemically and transferred to the affected party’s account

Why is this Penalty Necessary?

Increased mutual accountability: Both the customer and the exchange will exercise more caution in accepting orders due to the presence of a penalty.
Reduction in abandoned or ignored orders: Many platforms face issues with untracked orders; this policy prevents such cases.
Service quality assurance: Timely order execution boosts trust among customers and exchanges in the platform.
Higher transaction success rate: When both parties are aware that violations have consequences, they act more responsibly.

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