The Escrow Lifecycle
Every Zenland escrow follows a clear lifecycle. Here’s what happens at each stage:Step 1: Create the Escrow
Agree on Terms
Buyer and seller discuss and agree on the work, price, and timeline off-chain (chat, email, etc.)
Generate Contract PDF
The Zenland app generates a PDF containing all terms. This gets hashed and stored on-chain.
Choose an Agent (Optional)
Select a professional dispute resolver, or go “locked” for pure 2-of-2 escrow.
The escrow address is deterministic — it’s known before you even create it! This address is embedded in your PDF for verification.
Step 2: Seller Accepts
Once the escrow is funded, the seller must accept the contract to activate it:- Accept — Seller agrees to the terms, escrow becomes
ACTIVE - Decline — Seller rejects, buyer is refunded immediately
- No Response — After the acceptance window, buyer can cancel and get refunded
Step 3: Do the Work
With the escrow active:- Seller delivers the goods or completes the service
- Seller marks the escrow as
Fulfilledwhen done - Buyer reviews the delivery
Step 4: Settlement
The escrow can settle in several ways:Happy Path: Release
The buyer is satisfied and releases 100% of funds to the seller. Instant, no fees beyond the creation fee.Seller-Initiated Refund
The seller can always refund 100% to the buyer at any time. No approval needed. Use this for “no questions asked” returns.Auto-Release (Buyer Protection Expiry)
If the buyer doesn’t respond after the protection period ends (and seller marked fulfilled), the seller can claim the funds.Mutual Split
Both parties agree to divide the funds. Propose a split (e.g., 60/40), the other party approves, funds are distributed.When Things Go Wrong: Disputes
If there’s a disagreement:Learn about disputes
See the full dispute resolution process →
Summary: State Transitions
| State | Description | Next States |
|---|---|---|
| Pending | Escrow created, waiting for seller | Active, Refunded |
| Active | Seller accepted, work in progress | Fulfilled, Disputed, Released, Refunded |
| Fulfilled | Seller marked as complete | Released, Disputed |
| Disputed | Buyer raised an issue | Agent Invited, Split, Refunded |
| Agent Invited | Waiting for agent decision | Resolved, Split, Refunded |
| Released | Funds sent to seller ✓ | Terminal |
| Refunded | Funds returned to buyer ✓ | Terminal |
| Split | Funds divided between parties ✓ | Terminal |