> For the complete documentation index, see [llms.txt](https://hypotheca.gitbook.io/hypotheca-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hypotheca.gitbook.io/hypotheca-docs/hypotheca/security-and-risk/sybil-and-payment-protection.md). # Sybil & Payment Protection How Hypotheca reduces identity duplication and payment-history manipulation through identity binding and on-chain verification. Identity protection and payment verification address different forms of borrower-evidence manipulation. ERC-8004 identity binding establishes persistent agent context. On-chain payment verification establishes whether claimed economic activity occurred. ### Sybil protection * ERC-8004 identity binding * Coordinated Sybil-cluster detection * Wallet separation from the deployer or protocol wallet These checks reduce the chance that related or fabricated identities appear as independent borrowers. They do not provide perfect Sybil resistance. ### Payment protection * On-chain transaction-hash verification * Approved facilitator whitelist * Minimum of three verified receipts * At least two distinct payer addresses * At least one receipt within 30 days * Suspicious, farming, and circular payment detection A payment record becomes usable evidence only after its underlying transaction passes verification. Together, the identity and payment layers reduce duplication and payment-history manipulation without claiming perfect fraud prevention. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://hypotheca.gitbook.io/hypotheca-docs/hypotheca/security-and-risk/sybil-and-payment-protection.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.