> For the complete documentation index, see [llms.txt](https://bafex.gitbook.io/bafex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bafex.gitbook.io/bafex/business-model/legal-model-of-the-marketplace-operation.md).

# Legal model of the marketplace operation

* **BAFEX** operates as an online platform connecting buyers and sellers.
* Transactions are carried out through smart contracts (**Escrow**), in which the buyer's payment is temporarily "frozen" until the receipt of the goods is confirmed.
* Each participant (buyer, seller) enters into an offer agreement (Terms of Use) with **BAFEX**, while the legal obligations under the transaction are spelled out through a smart contract, and not directly between the buyer and seller.
* Transactions are executed on a peer-to-peer (**P2P**) basis, where the platform acts as a technological intermediary but does not assume the risk of non-delivery or non-payment.