# Funding Phase

<figure><img src="/files/4t13nr0wFrQmJQeHNDEQ" alt=""><figcaption></figcaption></figure>

## Phase 2 — Funding (When Logic Meets Capital)

Once an escrow is deployed, it becomes **fundable** — meaning any authorized wallet can deposit assets into it.\
This is where trust becomes tangible: the logic you set in the Initiation Phase now holds real value.

The **Funding Phase** signals the start of the agreement in motion.\
It turns the escrow from an empty container of logic into a live, capital-backed contract.

***

### 💸 Two Ways to Fund

Every escrow has an **Escrow ID** (also called **Contract ID**).\
Both terms refer to the same on-chain address — where funds are actually held.

You can fund an escrow in **two main ways**:

1. **Direct Deposit** — Send funds manually to the escrow’s ID using any Stellar wallet.
   * This method is simple and works universally.
   * However, deposits made this way may not automatically trigger indexation events, so if you’re building analytics or dashboards, you’ll need to handle those deposits separately.
2. **Using the “Fund Escrow” Endpoint** — via the Trustless Work API or dApp.
   * This option generates and signs the transaction from your connected wallet (e.g., Freighter).
   * It also emits a **Deposit Event** on-chain, making it easier for our indexer (and your platform) to track and verify deposits automatically.
   * This is the method we recommend — it’s what powers the “Fund” buttons in our Backoffice and Demo dApps.

> ⚡ In short:
>
> * Direct deposits **work** for any wallet or integration.
> * The API endpoint **tracks** them better for dashboards, automation, and future reconciliations.

***

### 🎯 The Amount and the Balance

When you deployed your escrow, you defined a **target amount** — that’s your goal.\
It’s used to calculate whether the escrow is:

* **Fully Funded** – the on-chain balance matches the target amount
* **Partially Funded** – the balance is lower than expected
* **Overfunded** – extra deposits were made

What you see on-chain is the **balance**, which is dynamic:

* It increases when deposits are made.
* It decreases when funds are released.
* It always reflects the escrow’s current real-time state.

> 💡 The target `amount` is static — it represents intent.\
> The `balance` is live — it represents reality.

***

### 🪙 Compatible Wallets and Assets

Funds can come from any wallet that supports the **trustline** you defined during initiation.\
The most common setup is **USDC on Stellar**, but any asset with a valid trustline works.

We recommend using **non-custodial wallets** for deposits — especially **Freighter**, our default integration.

> ⚠️ **Important note:**\
> Some custodial exchanges (like Binance) don’t yet support sending directly to contract addresses.\
> Withdrawals may fail or get flagged as invalid.\
> Always test deposits from a non-custodial wallet first.

***

### 🔄 Advanced Integrations (Optional)

If you’re building a product where funds flow in from external users or payment processors — like a marketplace or investment pool — you can integrate **on-ramp services** directly with the escrow.

We’ve tested integrations where on-ramps send USDC straight to an escrow contract, creating a seamless deposit experience.\
Each successful deposit triggers an event that platforms can listen to for **real-time funding status** updates.

> 💬 Builders who want to explore advanced integrations can check out our open-source examples and dApp code on GitHub.\
> We’re continuously experimenting with new funding patterns and wallets to improve this experience.

***

### 📦 Outcome of the Funding Phase

By the end of this phase:

* Your escrow now holds real assets.
* Its balance reflects the amount deposited.
* Events are recorded on-chain for transparency.
* All participants can independently verify the deposit.

You can confirm the escrow’s funded state on:

* 🌐 [**Escrow Viewer**](https://viewer.trustlesswork.com) — for a clear visual of deposits and status
* 🔍 [**Stellar Expert**](https://stellar.expert) — for blockchain-level transaction details

> 💡 Use the Viewer for clarity, Expert for raw transparency.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.trustlesswork.com/trustless-work/v2-en/introduction/technology-overview/escrow-lifecycle/funding-phase.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.