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The Escrow Lifecycle

Every Zenland escrow follows a clear lifecycle. Here’s what happens at each stage:

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Step 1: Create the Escrow

1

Agree on Terms

Buyer and seller discuss and agree on the work, price, and timeline off-chain (chat, email, etc.)
2

Generate Contract PDF

The Zenland app generates a PDF containing all terms. This gets hashed and stored on-chain.
3

Choose an Agent (Optional)

Select a professional dispute resolver, or go “locked” for pure 2-of-2 escrow.
4

Fund the Escrow

Buyer deposits funds + pays the 1% protocol fee. Funds are now locked in the smart contract.
The escrow address is deterministic — it’s known before you even create it! This address is embedded in your PDF for verification.

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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
If you’re a seller, always review the terms carefully before accepting. Once active, you’re committed to delivering.

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Step 3: Do the Work

With the escrow active:
  1. Seller delivers the goods or completes the service
  2. Seller marks the escrow as Fulfilled when done
  3. Buyer reviews the delivery
Communication is key! Use your preferred channel (Telegram, email, etc.) to stay in sync with the other party.

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Step 4: Settlement

The escrow can settle in several ways:

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Happy Path: Release

The buyer is satisfied and releases 100% of funds to the seller. Instant, no fees beyond the creation fee.

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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.

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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.

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Mutual Split

Both parties agree to divide the funds. Propose a split (e.g., 60/40), the other party approves, funds are distributed.

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When Things Go Wrong: Disputes

If there’s a disagreement:
1

Open Dispute

The buyer opens a dispute, pausing normal settlement.
2

Invite Agent

Either party invites the pre-selected agent to review the case.
3

Agent Resolves

The agent reviews evidence and decides the split. Agent fee is deducted.

Learn about disputes

See the full dispute resolution process →

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Summary: State Transitions