> ## Documentation Index
> Fetch the complete documentation index at: https://mintlify.com/p2pdotme/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Circles of Trust

> Community-backed merchant collectives and Circle Admin governance

A Circle of Trust is a community-backed collective of merchants operated by a Circle Admin. Each Circle functions as a semi-autonomous unit within the protocol, managing its own merchant network while adhering to shared on-chain protocol rules.

Circles organize merchants into accountable groups, enable community oversight through staking and delegation, and distribute risk through tiered insurance pools.

## How Circles Work

```mermaid theme={null}
flowchart TD
    user[User order]
    orderFlow[Order flow]
    registry[Merchant registry]
    country[Country config]
    assignment[Eligibility and assignment checks]
    settlement[Settlement and accounting]

    user --> orderFlow
    orderFlow --> registry
    orderFlow --> country
    registry --> assignment
    country --> assignment
    assignment --> settlement
```

## Merchant Registry

The merchant registry is the operational core that Circles wrap. All merchant operations are on-chain and role-gated.

<Note>
  First-class Circle entities with dedicated lifecycle, Circle Admin roles with explicit stake requirements, and Circle-scoped merchant grouping are planned for a future release.
</Note>

## Key Features

<CardGroup cols={2}>
  <Card title="Accountable Groups" icon="users-gear">
    Merchants organized into community-managed collectives
  </Card>

  <Card title="Community Oversight" icon="eye">
    Staking and delegation enable decentralized governance
  </Card>

  <Card title="Distributed Risk" icon="shield-halved">
    Tiered insurance pools protect participants
  </Card>

  <Card title="On-Chain Operations" icon="link">
    All merchant operations are transparent and role-gated
  </Card>
</CardGroup>