(Transferred from https://board.net/p/PoE_Guide)

Point of Exchange (PoE) Guide

The purpose of a local Point of Exchange (PoE) is to serve exchanges between FairCoin (FAIR) and fiat money at the local level. The aim is having direct exchanges with cash in various places around the world where a Local Node (LN) exists, while taking advantage of the trust and confidence that such transactions in person provide.

A PoE is managed by the LN, so initially there should be an active node and a committed person, decided by the local assembly, to support these local exchanges.

Furthermore, every LN (usually in collaboration with other LNs that are using the same fiat currency) should initially set a commonly agreed rate to exchange between FAIR and local fiat. That agreement should be explicitly discussed and verified in a global Local Nodes Assembly before going into the next steps as described below.

If you have any doubts or need some extra help you can ask at the PoE chat group or write to admin@getfaircoin.net.

Email

The first thing the PoE needs is an email account under the domain @getfaircoin.net which will be used for contacting FairCoop or the users. Apply for one by providing the desired username (usually that of the LN) to sysadmin@fair.coop or in the PoE chat group. If there is only one PoE operating under a specific LN you may use the LN's email address (under the domain @fair.coop).

That email then should be used in the rest of the procedure below, to set-up the PoE's account in OCP and GetFaircoin platform.

Wallet

A FairCoin wallet, an address that connects (send/receive) PoE's local account to FairCoop funding, is needed for distributing the required FAIR for the exchanges. There are two options (non-excluding) for that, both offering an online wallet:

  • Create the PoE's account in the Open Collaborative Platform (OCP - ) linked to the local node project on OCP. This option is preferred since it connects the local PoE with the global strucuture of FairCoop, and can differentiate between PoE and LN wallets. An OCP administrator will activate your account and send you a confirmation e-mail with the account password.
  • Create a FairPay account and wallet.

getFaircoin

The next step is to register the local PoE at GetFaircoin platform by providing the necessary details to the administrators at admin@getfaircoin.net or contact directly @Michalis_K on Telegram chat app.

  • Location address
  • Opening hours
  • Contact information (e-mail, phone, chat alias, etc.)

In short time you should get a notice that your local PoE is activated and ready for use. Then you may ask for an amount of Faircoins to be accredited to the PoE's wallet to be used for direct local exchanges, by sending another e-mail anytime to admin@getfaircoin.net.

useFairCoin

Last step is to register in useFairCoin directory where all places that accept FairCoin are listed. This way people may easily find a place to exchange their FairCoin in cash. If you use or manage such NFC cards you may also add your PoE in the FairPay category.

The FAIR and fiat money (cash) that are in the PoE belong to our common FairCoop funds, so we should take care of them in the best interest of the entire ecosystem, meaning we should follow the common arrangements agreed in FairCoop assemblies. The limits for buying fiat (cash-out) are described for each case here.

In order to keep things organised and transparent to all members, please log exchange transactions on this PoE's ethercalc, updating it with the necessary information and balance after each transaction.

Although the LN has autonomy to decide about the amounts exchanged, there should be a way to determine and evaluate the type and needs of each user. There are two types of users:

  • people supporting FairCoop values and real FairCoin economy
  • people who just want to trade currencies, or even worse, speculate and profit from that

Ask some questions about:

  • Involvement in social movements.
  • How (s)he got to know FairCoop and Faircoin.
  • How this amount (especially if it's a big one) is going to be used. For example, as long period savings? in real economy? on a project?

It would be sensible to ask and help the LN to decide and manage its funds accordingly.

All these local exchanges are designed to have minimum charge to the user, as is a general Faircoop policy to offer easy and free of cost access to Faircoin and the whole economic system around it. However, every PoE is entitled to receive a compensation of 1% per exchange from FairCoop, in order to empower its activity and make the LN more sustainable.

Cash-in: buying fiat cash

1. Go through [GetFaircoin platform](https://getfaircoin.net/) and choose the option 'Cash at Local Nodes'.
2. Provide some necessary information of the user, like name, e-mail, etc. What is most important is a user's valid FAIR address where the coins will be sent.
3. As soon as you get the cash from the user, you may then send the equivalent amount in FAIR from the PoE's wallet.
4. You may send an extra 1% of the total amount exchanged in FAIR to the Local Node's account. This part is optional and rests on the decision of each LN.
5. Update the balance (in FAIR or fiat) of the PoE's accounts in the [ethercalc](https://ethercalc.org/localnodesPOE) so that is visible to all FairCoop participants.

Some of these steps may be already done by the user beforehand on line. In such case you should receive a notification to the PoE's e-mail inbox.

FairSaving option

If the user asks for a 'cold storage' (FairSaving account) for their FAIR, the PoE should complete these additional steps:

6. Inform admin@getfaircoin.net about the need and request a FairSaving account.
7. As soon as the account is created it will be sent to the PoE, so then the amount of FairCoin purchased by the user should be transfered there.
8. The PoE then informs the user, providing the FairSaving account's address and a link to the blockchain (https://chain.fair.to/) that confirms the transfer.
9. Update the balance (in FAIR or fiat) of the PoE's accounts in the [ethercalc](https://ethercalc.org/localnodesPOE) so that is visible to all FairCoop participants.

Cash-out: selling fiat cash

Some more detailed criteria and cash-out limits are explained here.

We are working on a new form to register cash-out exchanges through GetFaircoin. Meanwhile you may report any need to the LNs group.

1. Request the user to send the FAIR to the PoE's wallet address.
2. As soon as the transaction is confirmed, give the equivalent cash to the user, minus a **2% fee**.
3. Half of that fee (1%) should stay at the PoE as FairCoop cash, while the other half (1%) is a profit for the LN. If there is not enough cash in the PoE you may request the desired amount as described in the above note, providing a valid IBAN (preferably the LN one) for the bank transfer and any further information needed. Especially in cases where your local fiat currency rate fluctuates, FairCoop will cover the difference needed anytime.
5. Update the balance (either in Faircoins or fiat) of the PoE's accounts in the [ethercalc](https://ethercalc.org/localnodesPOE) so that is visible to all FairCoop participants.

Merchants who are registered on UseFaircoin or FairMarket are entitled to cash-out additional monthly amounts than ordinary users. They may exchange the total amount received for trading, BUT up to the amount in euros valued at the day of the transaction.

Example: A merchant sells goods for a value of €1000 when Faircoin assembly price was €0.05, thus receiving 20K FAIR, and later requires to cash-out that amount when Faircoin price is €0.90. In that case FairCoop´s commitment is to exchange up to the amount of €1000 as that was the original fiat value of the goods traded. So the merchant should give 1,111.11 FAIR to the PoE, plus 1% as a cash-out fee.

More info here.

Freedomcoop Cash-out

- Documentation pending -

BotC Cash-in

Currently only for Euro cash.

1. Member sends in OCP feedback thread: Cash In amount, company token, nearest PoE
2. BotC replies with PoE contact info
3. Member contacts PoE and brings cash, username and email
4. PoE contacts BotC (telegram or email) to verify cash is received by member 
5. BotC updates the user balance in their BotC multicurrency wallet.
6. Update the balance (fiat) of the PoE's account in the ethercalc: https://ethercalc.org/localnodesPOE so that is visible and transparent to all FairCoop participants.

BotC Cash-out

Currently only for Euro cash.

1. Member (a) checks ethercalc to see PoE's liquidity: https://ethercalc.org/localnodesPOE, (b) sends in OCP feedback thread: Cash Out amount, company token, PoE where to cashout, and (c) sends the amount in euro via wallet-to-wallet to the Faircoop-BotC wallet.
2. BotC checks PoE's ethercalc, replies to member with PoE's contact info and POECODE.
3. Botc contacts PoE to inform providing username, amount and POECODE.
4. Member contacts PoE, visits PoE, gives POECODE and gets cash.
5. PoE informs BotC that operation has been done.
6. Update the balance (fiat) of the PoE's account in the ethercalc: https://ethercalc.org/localnodesPOE so that is visible and transparent to all FairCoop participants.