Understanding Penalty for Delays and Commitment Breaches on EZDEX

Kate Hansen

Published:2025-07-01

Updated:2025-07-02

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, commitment to obligations and timely service delivery is one of our core principles and key values. As you know, in financial transactions, even the slightest delay or disregard for timing can lead to significant losses for either party involved in the transaction. For this reason, and to maintain transparency, ensure user confidence, and prevent any form of disorder, we have established clear policies regarding the management of commitments and order timing. One of these policies is the use of a security deposit and the imposition of penalties for delays or failure to fulfill obligations in fiat deposit and withdrawal orders.

What is the Delay or Breach of Commitment Penalty?

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 (the customer and the exchanger). The value is returned to their wallets after completing the transaction process.

If the exchanger and the client both fulfill their side of the deal and the order is processed smoothly, the guarantee amount is returned to both their wallets.

But in the event of negligence, delay in processing, or cancellation of the operation by either party, the guarantee amount is forfeited. In such situations, 50% of the amount is paid to the other party as compensation, and the remaining 50% is credited to EZDEX as a fine.

Each fiat deposit or fiat withdrawal order includes two timeframes, as outlined in the table below. These timeframes are determined and recorded by the customer at the time of placing the deposit or withdrawal order. Both the customer and the exchange accepting the order are obligated to adhere to these timeframes.

Order Type	First Timeframe	Second Timeframe
Cash Deposit	Maximum time for the exchange to announce the address (If the exchange accepts the customer’s order, it must register the delivery address—where the cash will be handed over—within the timeframe specified by the customer.)	Fund delivery deadline (The customer must visit the provided address within this period and deliver the cash.)
Bank Deposit	Maximum time for the exchange to provide the account details (If the exchange accepts the customer’s order, it must send the bank account details for the deposit within the timeframe specified by the customer.)	Deadline to upload payment receipt (The customer must upload the deposit receipt to the order within the maximum time after receiving the bank account details.)
Cash Withdrawal	Maximum time for the exchange to provide the pickup/delivery address (If the exchange accepts the customer’s order, it must provide the in-person pickup location or courier delivery details within the timeframe specified by the customer.)	Deadline for cash handover (The cash must be delivered to the customer, either in-person or via courier, within the specified timeframe.)
Bank Withdrawal	Deadline for submitting the payment receipt (If the exchange accepts the customer’s withdrawal request, it must upload the bank transfer receipt to the order within the timeframe specified by the customer.)	Deadline for deposit after receipt submission (The funds must be credited to the customer’s bank account within the maximum time after the receipt is submitted.)

These conditions are determined by the customer at the time of creating a deposit or withdrawal request. The exchange may review these conditions before accepting the order and, if capable of processing under the specified terms, proceed to accept the customer’s request.

Failure by either party to comply with the agreed timeframes will result in a penalty for the offending party and compensation being paid to the affected party.

In cases where a dispute arises, the matter will be reviewed and arbitrated by the oversight team.

How Much is the Delay or Breach of Commitment Penalty?

In the currency withdrawal and deposit orders, this is 1% of the value of the registered order and in the form of USDT.
The guarantee is equally taken from both parties to the transaction.

💡For example, if a customer would like to deposit $1,000 via bank transfer, they must deposit 1% of that value (that is, 10 USDT) into their wallet as a guarantee in USDT.

This will be held in their wallet at the time of the order placement as a satisfaction guarantee of the request.

Operationally, this amount is used to ensure that the exchanger is aware that the customer is serious about the order and can afford to pay a 10 USDT penalty if the request is not fulfilled or is delayed in time.

On the other hand, in the balance of exchanger, the order amount and commitment guarantee (i.e., $1,000 + 10 USDT) are both locked as well.

The $1,000 acts as a commitment guarantee for initiating the transfer of the deposit amount from the customer. After the customer has initiated the transaction, the funds will be deducted from the exchanger's EZDEX wallet and delivered to the customer's EZDEX wallet.

🟥However, the 10 USDT guarantee is the demonstration of commitment by the exchanger towards timely completion. In the event that the exchanger fulfills the order but fails to do it properly, the penalty value will be deducted from them—50% of this will be credited to the wallet of the customer as a reward.

🟩Once the request is completed and settled appropriately by both parties, the frozen funds are returned to their individual accounts.