Deposit means that both parties agree to pay a certain amount of money to each other as a guarantee in order to ensure the performance of debts. The amount of deposit shall be agreed by the parties, but it shall not exceed 20% of the subject matter of the main contract. The deposit contract shall be in written form, and the time limit for delivery of the deposit shall be stipulated in the contract, and the deposit contract shall take effect from the date of actual delivery of the deposit.

After the debtor performs the debt, the deposit shall be used as the price or recovered. If the party paying the deposit fails to perform the agreed debt, it has no right to demand the return of the deposit; If the party receiving the deposit fails to perform the agreed debt, it shall return the deposit twice.

Legal basis: Article 586 of the Civil Code of People's Republic of China (PRC), the parties may agree that one party shall pay a deposit to the other party as a guarantee for the creditor's rights. The deposit contract is established when the deposit is actually paid.

The amount of the deposit shall be agreed by the parties; However, it shall not exceed 20% of the subject matter of the main contract, and the excess shall not have the effect of deposit. If the actual amount of deposit paid is more than or less than the agreed amount, it shall be deemed as a change of the agreed amount of deposit.