🏬Advance Use cases

FrogPay will offer merchants to withdraw amounts locked in escrow to improve cash management for Merchants. Merchants will need to meet the following requirements to qualify for this feature:

  • Subscribe to Merchant Account Tier

  • Stake $FRGP tokens

  • Have a reputation level of silver or higher.

The following formula determines the maximum amount allowed to be withdrawn in advance.

WithdrawbleAmount=EscrowedAmount*ReputationMultiplier

In case of adverse dispute resolutions, the Merchant will be required to refund the amount or their tokens will be liquidated to cover the shortfall.

As the platform matures, this can become more sophisticated. The staking requirement may vary based on the merchants' domain, previous dispute rates, and reputation.

The protocol in the future will allow independent third parties to offer advances to Merchants based on the amount in escrow or popularly known as ‘Advance on receivables.

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