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Lighter.IM Official FAQ

1. General Questions​

What is Lighter.IM?​

Lighter.IM is a decentralized, non-custodial on/off-ramp protocol designed for secure and private fiat-crypto transactions. By leveraging ZKP (Zero-Knowledge Proofs) and the Nostr Protocol, we provide a trustless environment for P2P trading without the risks of central exchanges.

What makes Lighter.IM different from other P2P platforms?​

Unlike traditional platforms, Lighter.IM uses a 4-layer account system (EOA, NFT, TBA, and Nostr). This architecture decouples your master wallet from your trading assets and communication, ensuring that your primary funds are never directly exposed to the counterparty or the escrow contract.

2. The Account System & NFTs​

Why do I need to rent a Lighter Ticket NFT to trade?​

The NFT acts as your Sovereign Identity within the protocol. It serves three main purposes:

  • Sybil Resistance: The refundable rental fee prevents spam and malicious bot activity.
  • Asset Management: Your NFT "owns" a Token Bound Account (TBA) via EIP-6551, which securely holds your trading funds.
  • Reputation: Your successful trade history is tied to the NFT, allowing you to build a portable, on-chain credit score.

Is the NFT rental fee refundable?​

Yes. When you are finished with the service, you can "burn" (destroy) the NFT to claim your original deposit. Warning: If you destroy the account, the control of the TBA account and the trading credit data will be suspended and lose association. Note: Network gas fees paid to the blockchain for minting/burning are non-refundable.

What is the "Hierarchy" of TokenIDs?​

Lighter.IM roles are hardcoded by their minting sequence:

  • IDs 1–9 (Genesis Council): Reserved for Core DAO, Foundation, and Team.
  • IDs 10–100 (Arbitrators): 91 specialized slots for network mediators.
  • IDs 10000+ (Traders): Standard tickets for the global trading community.

3. Security & Trading​

What is a Token Bound Account (TBA)?​

A TBA is a smart contract wallet (based on EIP-6551) controlled by your NFT. Instead of trading from your main wallet (MetaMask, etc.), all assets in escrow are held by the TBA. This provides a "sandbox" that protects your main EOA from potential contract vulnerabilities.

How does the protocol ensure privacy?​

Lighter.IM integrates the Nostr Protocol for decentralized, end-to-end encrypted messaging. Your trade intents and chat logs are stored on Nostr network, ensuring your financial privacy remains censorship-resistant.

4. Disputes & The "Time Escape Window"​

How do "Time Escape Windows" protect my funds?​

The "Time Escape Window" is a fail-safe mechanism that prevents funds from being locked if a counterparty becomes unresponsive ("ghosts" you):

  • Payment Phase: If a buyer fails to pay, the seller can unilaterally cancel and reclaim escrowed funds after the window expires.
  • Arbitration Phase: If a party ignores a mediator’s ruling, the other party can execute the settlement on-chain once the window closes.

Are the Arbitrators trustworthy?​

Mediators are incentivized to be fair through Economic Alignment:

  • Staking: Arbitrators must hold a specific NFT (IDs 10-100) and are often required to stake collateral.
  • Conflict of Interest Protection: Arbitrator accounts have a Permanent Zero-Trade Quota. They cannot trade on the platform, ensuring their only role is unbiased mediation.
  • Reputation: All rulings are transparently logged on-chain.

5. Troubleshooting & Limitations​

Why can't I burn my NFT for a refund?​

You cannot destroy your NFT if you have Pending Trades. This is a safety lock to protect counterparties. Once all trades are settled or the "Time Escape Window" has cleared your quota, the refund function will be unlocked.

My counterparty is not responding. What should I do?​

  1. Wait for the initial Payment Window to expire.
  2. Trigger the on-chain request to cancel.
  3. If they remain unresponsive, wait for the Escape Window to end, then unilaterally reclaim your assets.

Ready to trade? > Join the Public Beta at beta.lighter.im 🚀