How does the reputation system work?

The reputation scheme is composed of several indicators that complement each other to give a more adequate result.

These indicators are:

1.  Qualification of the peer in buy or sell operations.
   This targets a respect treatment, diligence and mutual service in each operation.

This Rating can:

• Bad = 0
• Neutral = 0.75
• Good = 1
  Each level has as specific value that will serve as part of the whole reputation.

        2. Volume of transactions:

                 This allows not only the assessment of the peer to be taken into account, but also that the volume implied by each transaction is taken                     into account.

Each transaction has an operation amount and this is multiplied by the value of the qualification obtained in each operation, then the sum of the results is divided by the total amount of the operations, example:

John has done 5 operations:

       3. Diversity of operators:

This helps to measure how is the behavior with diversity of operators and not always with them.

The total users must be divided by the number of operations, that is:

4 users / 5 operations = 0.8.

Finally, the reputation system goes from 0 to 5, 100% of the reputation.

Each of the mentioned indicators has a weight:

Transaction Volume + Rating 75%.          3.75

Rating 20%.                                                        1

Diversity of operators.                  5%         0.25

                                               Total: 100%          5

Now what we do is multiply each result of the indicators with the respective amounts of the reputation system segmentation:

Transaction volume 3.75 X. 0.56 = 2.1

Peers rating 1 x 0.65 = 0.65

Diversity of operators 0.25 x 0.8 = 0.2

                                           John's reputation = 2.95 / 5

The User is considered new until completing the first 10 transactions in sale.

Warning: Users who have not yet completed 10 operations, their reputations are in the process of formation, so it is suggested not to make transactions with considerable risk levels.