Security Deposits

Security deposits are a common requirement in rentals—whether it's housing, co-living spaces, equipment, or other real-world use cases. Trustless Work makes them fair, transparent, and automated using smart escrows.

With Trustless Work, platforms can configure non-custodial smart contracts that define exactly how and when security deposits are returned or withheld.

---

Example Scenario

Alice rents a unit on a co-living platform. She deposits $500 USDC as a security deposit. At the end of her stay, she wants the deposit refunded—assuming there’s no damage.

---

Escrow Configuration

Role	Address
Depositor	Alice
Milestone Marker	Alice or Platform
Milestone Approver	Bob (Landlord/Host)
Release Signer	Platform
Receiver	Alice

---

Escrow Lifecycle

1. Initiation The platform configures the escrow with all required roles using Trustless Work’s API.

2. Funding Alice deposits $500 USDC into the escrow. The funds are held in a neutral smart contract.

3. Milestone Update After Alice’s stay ends, either Alice or the platform marks the milestone as "Request Refund."

4. Approval Bob inspects the property:

   • If everything is fine: Bob approves the refund.

   • If there are issues: Bob can reject or request a partial refund.

5. Release The platform (as Release Signer) finalizes the release:

   • 100% refund to Alice if approved.

   • Partial refund based on agreement.

   • Escalation possible if a dispute arises.

---

Benefits

• Trustless & Transparent: Smart contracts define rules upfront; funds are never held by the platform.

• Customizable Logic: Platforms can set deadlines, approval rules, or automatic fallback releases.

• Global by Default: Uses stablecoins on Stellar for fast, low-fee cross-border payments.

• Flexible Roles: Easily supports different dispute flows—platform-led, DAO-governed, or peer-to-peer.

---

Optional Enhancements

• Dispute Resolver Role: Add an arbiter or DAO to resolve conflicts.

• Time-Based Auto Approval: If Bob doesn’t respond in X days, the contract automatically refunds Alice.

---

Live Use Case: SafeTrust

SafeTrust is a platform for co-living spaces that uses Trustless Work to manage security deposits. By using smart escrows, SafeTrust ensures that all tenants receive fair treatment while reducing operational overhead for hosts.