Market trades
Remuneration
The remuneration of market trades is performed via the trade accounts of the participants. Payment may be carried out solely in Groks, or partly in Groks and partly in pounds or dollars. Transactions which would result in an accounts negative balance exceeding its Grok creation limit are not possible.
Coverage Query
Before a market trade is bindingly agreed, the buyer may grant the seller a coverage query in order to document that she can afford it. During this query, that amount of Groks are reserved on the buyers account for the seller, for an amount of time determined by the buyer.
Usage of the coverage query may be subject to a fee.
Assessment
Every transaction should be evaluated by the people involved in it (as on eBay).
Level of Prices
The level of prices within the market community may (and probably should) develop differently to those in the pound or dollar market (e.g. nursing services may be worth more than those of lawyers). In the case of taxable goods and services, there should be open communication with the tax authorities in order to achieve a balanced solution for all parties involved.
Legal and Fiscal Requirements
For trades (partially) remunerated in Groks the same legal and fiscal requirements apply as for purchases which are paid for in pounds or dollars. Professional and commercial goods and services will thus normally be subject to income tax and VAT. Fraud and tax evasion will not be tolerated.
For the purpose of calculating taxes, the conversion into pounds or dollars can be made in the following two ways:
- via the value of the joint-ownership certificates or
- via direct comparison of one's own service in Groks and pounds / dollars – if a market participant regularly charges 50 £ / $ or 40 Groks for the same service, then a Grok is equivalent to 1.25 £ / $ for this participant and this service.
In the latter case, the 40 Groks would be treated as £50 / $50 for tax purposes.