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Risks

Peer is non-custodial and cryptographically verified, but P2P fiat-to-crypto trading has real trust assumptions and failure modes. Know them before you trade.

Verification Risks​

  • Verification service centralization: Payment verification currently runs through attestation infrastructure operated by the Peer team (comparable to single-sequencer L2s today). A compromised or colluding verifier could in theory attest to payments that didn't happen. The roadmap is a decentralized network of attestors; until then, this is the protocol's main trust assumption.

  • TEE trust assumptions: Parts of verification run inside trusted execution environments. TEEs carry their own assumptions about hardware vendors and attestation chains — a serious TEE compromise could affect proof integrity.

  • Payment platform API changes: If a payment platform changes how payment data is shown or accessed, Peer may temporarily be unable to verify payments on that platform — even for fiat that has already been sent. While the intent is still active, a seller may choose to manually release. If it expires first, cancellation or pruning can return the locked crypto to the seller's deposit, and the app's manual-release action is no longer available.

Counterparty Risks​

  • Reversible fiat transactions: Payments on Web2 platforms can sometimes be reversed through chargebacks or fraud claims. On OrchestratorV3 routes, configurable stake reserves or deferred payouts can cover part or all of this risk for a limited window. Coverage may be partial, and the seller bears losses above the reserve or after the window. Sellers choose whether to opt into the risk hook and can also restrict who fills their liquidity with Trusted Takers.

  • Stake and cancellation penalties: Stake backing a pending order can be slashed if the buyer cancels or lets it expire after the configured grace period. The penalty increases with the time liquidity was locked and is capped by the snapshotted order terms. See Buying Capacity and Staking.

  • Delegated stake: An authorized taker can consume a stake owner's shared capacity and expose reserved stake to cancellation penalties or chargeback compensation. Stake owners should authorize only trusted wallets; takers should restrict or disable unwanted delegation.

Banking Risks​

  • Flagged transactions: Some banks or payment platforms may flag or restrict accounts that appear to be involved in crypto activity. Peer never touches your fiat account, but payment notes like "crypto" or "USDC" may raise suspicion with certain institutions. Avoid referencing crypto in payment descriptions and prefer providers known to be neutral toward digital assets.

Fiat Custody Risk​

  • Non-custodial design: The protocol never handles fiat. You keep full control of your funds and make payments through external platforms — which also means you are responsible for your own conduct on those platforms.

The protocol cannot reverse payments, freeze funds, or mediate disputes related to off-platform fiat activity.

Audits​

The protocol's smart contracts have been through multiple independent security reviews, including audits by Sherlock, across the V2 and V3 releases.