OTC Exchange offers convenient low-fee escrow service and a marketplace to perform currency exchange operations between PayPal funds and Bitcoin. The escrow service is using automated verification procedures thus providing payment/funds delivery guarantee for both trading parties.
OTC Exchange marketplace does not require its members to maintain any kind of internal balance and employ deposit/withdrawal procedures. Funds are only kept by the marketplace till order fulfilment. Should order originator wish to close non-fulfilled or partially fulfilled order, correspondent Bitcoin amount is sent back to its respective owner. PayPal funds are not kept by the marketplace at all, they go directly member to member.