Escrow Lifecycle

A Journey in Phases

The escrow lifecycle represents the structured flow of actions and responsibilities involved in securely managing a transaction. At Trustless Work, we break this lifecycle into clear, logical phases, ensuring transparency and adaptability for diverse use cases.

Core Phases of the Escrow Lifecycle

1. Initiation Phase: The foundation of the process, where roles, responsibilities, and transaction terms are established, and the escrow contract is created. Learn More

2. Funding Phase: The phase where the funds are deposited into the escrow contract, securing the transaction and preparing for the next steps.

3. Milestone Updates Phase: As the transaction progresses, milestones are marked as completed by the designated party, providing visibility and enabling reviews.

4. Approval Phase: The phase where milestones are reviewed and approved (or disputed), moving the transaction closer to resolution.

5. Release Phase: Funds are released to the designated recipient based on milestone approvals or dispute resolutions, completing the financial component of the transaction.

6. Closure Phase: Marks the official end of the escrow process, ensuring all conditions are met, funds are distributed, and the contract is finalized.

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Alternative Phases in the Escrow Lifecycle

In some scenarios, the lifecycle may include additional phases to address unique circumstances:

1. Dispute Resolution Phase: Engaged when there are disagreements between parties, this phase ensures fairness by resolving disputes and determining the final outcome.

2. Escrow Cancellation Phase: Allows for the early termination of the escrow contract under specific conditions, ensuring any funds or fees are appropriately handled.