Loop Economy Policy

Effective Date: December 1, 2025

Company: LoopHood, Inc.

"Loops" are the reputation currency of LoopHood. They measure your trustworthiness and contribution to the community. Earn Loops by being active, helpful, and reliable. Redeem Loops in the Loop Store for exclusive local deals.

1. EARNING LOOPS

1.1 Earning Mechanisms

Listing Creation: +1 Loop
Completed Rental (Renter): +10 Loops (Happy Path)
Completed Rental (Owner): +15 Loops (Happy Path)
Completed Sale (Buyer): +5 Loops
Completed Sale (Seller): +10 Loops
Writing a Review: +10 Loops
Referral: +20 Loops (Referrer), +50 Loops (Referee)
ID Verification: +50 Loops
Background Check (Clear): +100 Loops

2. PENALTIES & DEDUCTIONS

To maintain community safety, Loops are deducted for negative behavior.

2.1 Deduction Schedule

Infraction	Deduction	Additional Action
Negative Review (1 Star)	-20 Loops	-
Negative Review (2 Stars)	-10 Loops	-
No Show	-20 Loops	-
Late Delivery	-2 Loops/day	Max -15
Provider Cancellation	-8 Loops	If after acceptance
Verified Abuse	-25 Loops	7-Day Listing Freeze
Spam Messaging	-3 Loops	-
Misleading Listing	-30 Loops	Mandatory Correction
Unsafe Behavior	-50 Loops	Trust Review Flag
Confirmed Fraud	-100 Loops	Permanent Restriction
Theft / Non-Return	-150 Loops	Account Suspension

3. ACCOUNT RESTRICTIONS

3.1 Shadow Banning

If your Loop Score drops below -50, your account is automatically Shadow Banned.

Your listings become invisible to other users.
You cannot create new listings.
The ban is lifted automatically when your score rises above -50.

3.2 Automatic Freezes

Your account will be frozen for 10 days if you trigger any of the following within a 30-day window:

3 Cancellations
2 No-Shows
5+ Unresolved Abuse Reports

4. APPEALS & DISPUTES

You may appeal any penalty through the Trust & Safety Center.

Successful Appeal

If your appeal is approved, we will refund the deducted Loops and award +5 Goodwill Loops.

Rejected Appeal

If your appeal is found to be frivolous or false, an additional -10 Loops penalty will be applied.

Loops have no cash value and are solely for reputation tracking within the LoopHood platform.

Please wait a moment

Infraction

Deduction

Additional Action

Negative Review (1 Star)

-20 Loops

Negative Review (2 Stars)

-10 Loops

No Show

-20 Loops

Late Delivery

-2 Loops/day

Max -15

Provider Cancellation

-8 Loops

If after acceptance

Verified Abuse

-25 Loops

7-Day Listing Freeze

Spam Messaging

-3 Loops

Misleading Listing

-30 Loops

Mandatory Correction

Unsafe Behavior

-50 Loops

Trust Review Flag

Confirmed Fraud

-100 Loops

Permanent Restriction

Theft / Non-Return

-150 Loops

Account Suspension