Why default is extremely rare
On traditional bookmakers, default doesn't exist: the house always has enough money. On poorly designed P2P platforms, default is a real problem - a bettor can promise to pay and then disappear.
On Ktkarena, default is technically impossible in the vast majority of cases. Here's why:
As soon as your bet is matched to an opponent, your opponent's KTK have already left their wallet and entered escrow. That's the fundamental mechanic of P2P betting with us. Your opponent cannot "back out" by making their KTK disappear - they're no longer theirs.
Escrow is managed by the platform, not by the bettors. As long as the KTK are in escrow, they're available to the winner at resolution.
How the guarantee fund protects you
In extremely rare cases (technical bug, detected escrow bypass, etc.), if an opponent's escrow doesn't cover your winnings, the Ktkarena guarantee fund takes over.
The guarantee fund is funded by:
- Cancellation penalties (10-20%).
- A fraction of our commission that we set aside.
- Deposits made by the company on its own account.
When you're in this (extremely rare) case, here's what happens:
- You receive your winnings as planned, paid from the guarantee fund.
- You receive a special notification: "Your winnings of [X] KTK were paid by the Ktkarena guarantee fund (exceptional case)."
- You have nothing to do. It's automatic.
What happens to the defaulting opponent
If we detect an abnormal default case (which is very rare), we investigate:
- If it's a technical bug: we fix it, and the fund reimburses the opponent who did nothing wrong.
- If it's an attempted manipulation: account sanctions (warning, suspension, exclusion).
- If it's detected fraud: immediate exclusion + report to the relevant authorities.
We have a team dedicated to detecting abnormal behavior. It's a priority for maintaining trust in the platform.
Our protection commitment
You never lose money because of a defaulting opponent. That's our commitment.
Even in the worst imaginable scenario (5 people conspire to commit fraud, a critical bug makes it to production, a security flaw is exploited), our guarantee fund fully compensates honest bettors.
That's also why we have mandatory KYC. Before we allow an account to bet, we verify the identity. That drastically reduces fraud attempts.