Escrow Lifecycle
A Journey in Phases
Last updated
A Journey in Phases
Last updated
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.PreviousRoles, Parties, and Fees in Trustless Work
Initiation Phase: The foundation of the process, where roles, responsibilities, and transaction terms are established, and the escrow contract is created. Learn More
Funding Phase: The phase where the funds are deposited into the escrow contract, securing the transaction and preparing for the next steps.
Milestone Updates Phase: As the transaction progresses, milestones are marked as completed by the designated party, providing visibility and enabling reviews.
Approval Phase: The phase where milestones are reviewed and approved (or disputed), moving the transaction closer to resolution.
Release Phase: Funds are released to the designated recipient based on milestone approvals or dispute resolutions, completing the financial component of the transaction.
Closure Phase: Marks the official end of the escrow process, ensuring all conditions are met, funds are distributed, and the contract is finalized.
In some scenarios, the lifecycle may include additional phases to address unique circumstances:
Dispute Resolution Phase: Engaged when there are disagreements between parties, this phase ensures fairness by resolving disputes and determining the final outcome.
Escrow Cancellation Phase: Allows for the early termination of the escrow contract under specific conditions, ensuring any funds or fees are appropriately handled.
