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
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. Learn More
Milestone Updates Phase: As the transaction progresses, milestones are marked as completed by the designated party, providing visibility and enabling reviews. Learn More
Approval Phase: The phase where milestones are reviewed and approved (or disputed), moving the transaction closer to resolution. Learn More
Release Phase: Funds are released to the designated recipient based on milestone approvals or dispute resolutions, completing the financial component of the transaction. Lean More
Alternative Phase in the Escrow Lifecycle
If, any of the parties raise a dispute, the lifecycle takes a " detour" into the dispute resolution phase.
Dispute Resolution Phase: Engaged when there are disagreements between parties, this phase ensures fairness by resolving disputes and determining the final outcome. Disputes can end in a full refund, partial refund, or null refund to the client.
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