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Advanced users only. Locked escrows have NO dispute resolution. Funds can be locked FOREVER if parties disagree.

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What is a Locked Escrow?

A locked escrow (also called “2-of-2 escrow”) is created with no agent selected. This means:
  • ✅ Maximum trustlessness — no third party can touch your funds
  • ⚠️ No dispute resolution — if you disagree, there’s no arbiter
  • 🔒 Permanent lock risk — funds can be locked forever if you can’t agree
This is Satoshi Nakamoto’s original escrow design from 2010, based on pure game theory.

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How It Works

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Available Actions

ActionWho Can Do ItResult
ReleaseBuyer100% to seller
RefundSeller100% to buyer
Propose SplitEitherSuggest % distribution
Accept SplitOther partyExecute the split
There is NO unilateral action for the buyer to get funds back. Only the seller can refund.

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The Game Theory

Locked escrows work because of mutually assured destruction:

Seller Cheats

Seller delivers nothing
↓
Buyer refuses to release
↓
Money burns (locked forever)
↓
Seller gains $0

Buyer Cheats

Buyer claims non-delivery
↓
Seller refuses to refund
↓
Money burns (locked forever)
↓
Buyer gains $0
The key insight: Cheating has zero expected value because the other party can always burn the funds. This incentivizes honest behavior.

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When to Use Locked Escrow

Trading large amounts with established partners you’ve worked with before.
Business partners, friends, or repeat clients where trust is established.
When you don’t want any third party to see transaction details.
When you philosophically prefer pure code over human arbitration.

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When NOT to Use Locked Escrow

Avoid locked escrows in these situations:
  • ❌ First-time transactions with strangers
  • ❌ Subjective deliverables (design, writing, etc.)
  • ❌ High-value transactions you can’t afford to lose
  • ❌ Emotional counterparties who might act out of spite
  • ❌ Complex projects with room for interpretation

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Real Risks to Understand

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Risk 1: Spite Burns

Even if you delivered perfectly, a bitter buyer might refuse to release just to hurt you. 
Seller: "But I delivered exactly what we agreed!"
Buyer: "I don't care. I'd rather burn the money."
Result: Funds locked forever.

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Risk 2: Genuine Disagreement

Good-faith parties can disagree on quality or completeness. 
Seller: "The website is done."
Buyer: "The contact form doesn't work."
Seller: "It works fine on my machine."
Result: Stalemate. No agent to decide who's right.

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Risk 3: Abandonment

Either party disappearing means funds are stuck. 
Escrow funded → Seller accepts → Seller disappears
Result: Buyer can never get funds back.

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Stuck in a Locked Escrow?

If you’re in a locked escrow dispute, your options are:
1

Communicate

Reach out to the other party. Many deadlocks resolve with conversation.
2

Propose Fair Split

Split the difference. Getting 50% is better than 0%.
3

Accept the Loss

If they won’t respond, you may have to write it off.
There is NO DAO escalation, NO support team, and NO way to recover funds from a locked escrow. This is by design.

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Creating a Locked Escrow

If you understand the risks and want to proceed:
1

Create Escrow

Start creating an escrow normally
2

Agent Selection

When asked to select an agent, choose “No Agent”
3

Acknowledge Warning

You’ll see a warning. Confirm you understand the risks.
4

Complete Creation

Fund the escrow as normal

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Comparison: Standard vs Locked

FeatureStandard EscrowLocked Escrow
AgentYes, pre-selectedNone
Dispute ResolutionAgent decidesMutual agreement only
Permanent Lock RiskNoYes
Third-Party TrustRequiredNot required
Best ForMost usersPower users, OTC
FeesProtocol + AgentProtocol only

Not sure? Use Standard

Standard escrows are recommended for most transactions →