5.2 Reputation

Each participant in the ReSource Network may gain Reputation points when acting in ways deemed beneficial to the network and lose them when displaying unwanted behaviors. However, more than an incentive mechanism and measure of desired behavior, Reputation measures a participant’s stake in the network, their dependence on it, and their alignment of interest with it.

Members

Members gain Reputation when:

• Participating in network transactions

• Swiftly rebalancing accounts to zero

• Demonstrating high availability for trading activity

• Receiving high ratings from customer reviews

Members lose Reputation when:

• Remaining in deficit for too long

• Rejecting purchase requests by other members

• Defaulting or making payments late

• Receiving low reviews by other members

• Violating terms of service

Underwriters

Underwriters gain Reputation when:

• Generating below-average default rates of underwritten members

Underwriters lose Reputation when:

• Generating above-average default rates of underwritten members

Ambassadors

Ambassadors gain Reputation when

• Generating above-average default rates of underwritten members

Ambassadors lose Reputation when

• Generating above-average default rates of underwritten members