Fidelity Bonds
A fidelity bond is a mechanism which ensures that market actors act honestly. It is a protection mechanism against various kinds of attacks that involve the creation of fraudulent identities.
Warning
It is impossible to move or spend funds that are locked in a fidelity bond before the bond expires. They cannot be used in collaborative transactions (neither as taker nor as maker) as fidelity bonds are time-locked by the Bitcoin protocol.
Create Fidelity Bond
You can create a fidelity bond via the Earn screen. It involves the following steps:
- Set expiration date (which defines the bond's duration)
- Select a jar as funding source
- Select a UTXO, preferably one labeled
cj-out
After that, you will be asked to review the bond configuration. If everything looks right, you can create the fidelity bond which will time-lock your funds for the set duration.
Refer to the screenshots below to understand the steps in more detail:
Renew Fidelity Bond
Since Jam version 0.2.0 it is possible to easily renew a fidelity bond. At the Earn tab it will be shown that the fidelity bond is expired:
Click Renew Bond.
Then specify the expiration date of the new/renewed bond.
