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Fees for LR were generally much higher, because the way they structured it was to have 3rd party companies[1] handle transactions in and out of LR - who usually charged somewhere around 3-5%.

Liberty Reserve wasn't in the business of actually converting money in their system to or from real-world currencies, and handed off tasks such as indentity verification and anti-fraud to the companies who actually exchanged those bits for real money.

In some regards, LR was very similar to a protocol.

1. http://web.archive.org/web/20130424151449/http://www.liberty...




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