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Risks

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

Verification risks​

  • Centralized verification: Peer operates the attestation service that verifies payments, much like an L2 with a single sequencer. A compromised or colluding verifier could attest to payments that didn't happen. This is the protocol's main trust assumption.
  • TEE assumptions: Verification runs in AWS Nitro Enclaves. Their security depends on the hardware vendor and its attestation chain; a serious enclave compromise could affect attestations.
  • Payment platform changes: If a platform changes how it shows or serves payment data, Peer may be unable to verify payments on it for a while, even for money already sent. While the order is active, the seller can release it manually. Once it expires, the locked crypto returns to the seller's deposit and manual release is no longer available.
  • Governance: Peer's protocol owner can change protocol settings, including the attestation signers, admission and settlement policies, and the protocol fee (up to 5%). It can also pause new orders and payment-verified completions.

Counterparty risks​

  • Reversible payments: Some fiat payments can be reversed through chargebacks or fraud claims. On Venmo and PayPal, each payout is backed by the buyer's stake or held for a 14-day dispute window, and a seller who proves a chargeback in time is paid from it. Other platforms have no stake-backed protection, and no protection can stop a payment platform from reversing a payment. See Stake to Take.

Banking risks​

  • Flagged accounts: Some banks and payment platforms flag or restrict accounts that look involved in crypto trading. Peer never touches your fiat account. Don't mention crypto, USDC or Peer in payment notes, and prefer platforms that are neutral toward crypto.

Fiat custody​

The protocol never holds fiat. You pay through external platforms and are responsible for your conduct on them. The protocol can't reverse a fiat payment.

Audits​

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