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What is a Standard Escrow?

A standard escrow is created with a pre-selected agent who can resolve disputes if buyer and seller disagree.

Recommended for Most Users

Standard escrows offer the best balance of security and flexibility. Even if you trust your counterparty, having an agent as backup is wise.

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How It Works

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Key Features

Professional Arbitration

If you disagree, a qualified agent reviews the case and decides a fair outcome.

Stake-Backed Agents

Agents stake funds to ensure they act fairly. Misconduct = slashing.

MAV Protection

Agents can only handle escrows up to their Maximum Arbitratable Value (based on stake).

7-Day Timeout

If the agent is unresponsive, you can claim timeout and settle mutually.

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Choosing a Good Agent

When creating an escrow, you’ll see a list of available agents. Here’s what to look for:

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Reputation Metrics

MetricWhat It Means
Total ResolvedHow many disputes they’ve handled
Registration DateHow long they’ve been active
AvailabilityWhether they’re accepting new cases

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Fees

Agents charge two types of fees:
Fee TypeWhen ChargedTypical Range
Assignment FeeWhen agent is selected at creation0-2%
Dispute FeeOnly if agent resolves a dispute1-10%
Lower fees aren’t always better. Experienced agents with higher fees may provide better resolution.

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Stake and MAV

Agents must stake funds to participate:
  • Stablecoin Stake: Determines their MAV (Maximum Arbitratable Value)
  • DAO Token Stake: Shows alignment with the protocol
Example:
- Agent stakes $1,000 in USDC
- MAV multiplier is 20x
- Agent can handle escrows up to $20,000
Your escrow amount must be within the agent’s MAV for them to be eligible.

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The Dispute Flow

If something goes wrong:
1

Buyer Opens Dispute

Signals that there’s a problem with the delivery
2

Either Party Invites Agent

At invite time, the agent’s eligibility is re-verified
3

Agent Reviews Evidence

Both parties submit their case
4

Agent Sets Split

Decides what % goes to buyer vs seller
5

Automatic Distribution

Agent fee deducted first, then funds distributed

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Benefits of Standard Escrows

If one party tries to cheat, the agent provides an impartial resolution.
Don’t need to negotiate endlessly. Agent decides within days.
Funds can never be locked forever — there’s always a path to resolution.
Good behavior is recorded. Build a track record for future transactions.

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When NOT to Use Standard Escrow

Consider a locked escrow instead if:
  • You have absolute trust in your counterparty
  • You’re doing OTC trades with established partners
  • You want maximum trustlessness (no third party at all)
  • You understand and accept the risk of funds being locked forever

Compare Escrow Types

Learn about locked escrows →