Legal analysis: deposit refers to the guarantee of payment. For example, in a business relationship, the buyer pays part of the money to the seller after signing the contract as a guarantee for future payment. If the buyer fails to perform the contract, the seller may not return the deposit. If the seller performs the supply obligation according to the contract, the deposit will be converted into payment. If the seller fails to fulfill the supply obligation according to the contract, it shall bear the responsibility of returning the deposit twice. In a word, deposit means guarantee, and it is also a term in law.

Legal basis: Article 586 of the Civil Law 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 of 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.