> ## Documentation Index
> Fetch the complete documentation index at: https://docs.zen.land/llms.txt
> Use this file to discover all available pages before exploring further.

# Standard Escrow

> The recommended escrow type with professional dispute resolution.

## What is a Standard Escrow?

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

<Card title="Recommended for Most Users" icon="star">
  Standard escrows offer the best balance of security and flexibility. Even if you trust your counterparty, having an agent as backup is wise.
</Card>

***

## How It Works

```mermaid theme={null}
graph TD
    A[Buyer Creates Escrow] --> B[Selects Agent]
    B --> C[Seller Accepts]
    C --> D{Work Completed?}
    D -->|Yes| E[Buyer Releases]
    D -->|Dispute| F[Agent Invited]
    F --> G[Agent Decides Split]
    G --> H[Funds Distributed]
```

### Key Features

<CardGroup cols={2}>
  <Card title="Professional Arbitration" icon="gavel">
    If you disagree, a qualified agent reviews the case and decides a fair outcome.
  </Card>

  <Card title="Stake-Backed Agents" icon="shield-check">
    Agents stake funds to ensure they act fairly. Misconduct = slashing.
  </Card>

  <Card title="MAV Protection" icon="coins">
    Agents can only handle escrows up to their Maximum Arbitratable Value (based on stake).
  </Card>

  <Card title="7-Day Timeout" icon="clock">
    If the agent is unresponsive, you can claim timeout and settle mutually.
  </Card>
</CardGroup>

***

## Choosing a Good Agent

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

### Reputation Metrics

| Metric                | What It Means                       |
| --------------------- | ----------------------------------- |
| **Total Resolved**    | How many disputes they've handled   |
| **Registration Date** | How long they've been active        |
| **Availability**      | Whether they're accepting new cases |

### Fees

Agents charge two types of fees:

| Fee Type           | When Charged                       | Typical Range |
| ------------------ | ---------------------------------- | ------------- |
| **Assignment Fee** | When agent is selected at creation | 0-2%          |
| **Dispute Fee**    | Only if agent resolves a dispute   | 1-10%         |

<Tip>
  Lower fees aren't always better. Experienced agents with higher fees may provide better resolution.
</Tip>

### 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
```

<Note>
  Your escrow amount must be within the agent's MAV for them to be eligible.
</Note>

***

## The Dispute Flow

If something goes wrong:

<Steps>
  <Step title="Buyer Opens Dispute">
    Signals that there's a problem with the delivery
  </Step>

  <Step title="Either Party Invites Agent">
    At invite time, the agent's eligibility is re-verified
  </Step>

  <Step title="Agent Reviews Evidence">
    Both parties submit their case
  </Step>

  <Step title="Agent Sets Split">
    Decides what % goes to buyer vs seller
  </Step>

  <Step title="Automatic Distribution">
    Agent fee deducted first, then funds distributed
  </Step>
</Steps>

***

## Benefits of Standard Escrows

<AccordionGroup>
  <Accordion title="Protects Against Bad Faith" icon="shield">
    If one party tries to cheat, the agent provides an impartial resolution.
  </Accordion>

  <Accordion title="Faster Resolution" icon="bolt">
    Don't need to negotiate endlessly. Agent decides within days.
  </Accordion>

  <Accordion title="Lower Risk" icon="life-ring">
    Funds can never be locked forever — there's always a path to resolution.
  </Accordion>

  <Accordion title="Reputation Building" icon="star">
    Good behavior is recorded. Build a track record for future transactions.
  </Accordion>
</AccordionGroup>

***

## When NOT to Use Standard Escrow

Consider a [locked escrow](/escrow-types/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

<Card title="Compare Escrow Types" icon="scale-balanced" href="/escrow-types/locked-escrow">
  Learn about locked escrows →
</Card>