🏬Advanced Use Case for Merchants

FrogPay is innovating merchant services by offering a forward-thinking cash management feature that enhances liquidity and financial flexibility. This feature allows qualified merchants to withdraw a portion of funds held in escrow before the conclusion of a transaction, boosting their operational cash flow.

To access this advanced feature, merchants are required to:

• Subscribe to a Merchant Account Tier.

• Stake a specific amount of $FRGP tokens to show their commitment and align interests with the ecosystem.

• Maintain a reputation at the Silver level or higher.

The calculation for the advance withdrawal is based on the escrow amount and the merchant's reputation level, determined by the following formula:

WithdrawableAmount = EscrowedAmount * ReputationMultiplier

The Reputation Multiplier varies according to the merchant's reputation level:

• Bronze: No multiplier is applied, meaning Bronze merchants are not eligible for advance withdrawal.

• Silver: A multiplier of 0.5 allows for the withdrawal of up to 50% of the escrowed amount.

• Gold: With a multiplier of 0.7, up to 70% of the escrowed funds can be accessed.

• Platinum: The highest reputation level with a multiplier of 0.9, permitting withdrawal of up to 90% of funds in escrow.

In the event of a dispute resulting in a resolution against the merchant, they are obliged to return the advanced amount. Failure to do so will result in the liquidation of their staked $FRGP tokens to cover any discrepancies.

As FrogPay continues to evolve, the granularity of this system will increase. The staking requirements may be adjusted according to various factors such as the merchant's business domain, historical dispute rates, and reputation.

Furthermore, the protocol is set to expand, allowing third-party financiers to provide 'Advances on Receivables'—a financial service where merchants can receive upfront payments based on the anticipated funds from escrow. This modern approach to merchant services underscores FrogPay’s dedication to providing flexible financial solutions that cater to the dynamic needs of businesses.