Question 1

Where exactly does my crypto go when I deposit it, and how does it get released?

Accepted Answer

When a Buyer deposits crypto into our escrow, the money is locked directly inside an automated digital lockbox (a Smart Contract) on the blockchain. No company, individual, or hacker can access this money. The funds are only unlocked in three ways: (1) Safe Payout: the buyer is happy with the work and clicks "Release" to send the money to the seller instantly. (2) Friendly Refund: the seller cancels the deal and the money goes back to the buyer automatically. (3) Fair Split: in case of minor defects or a dispute, Kleros jurors determine a fair split to pay both sides.

Question 2

How do transaction fees (gas fees) get paid for, and how much are they?

Accepted Answer

Gas fees are paid by the party initiating each transaction — typically the Buyer for the deposit, and the Seller to collect payout. On Ethereum mainnet they vary with network congestion, typically $0.50–$5 per action. We show an estimated fee before you sign any transaction.

Question 3

Is there an extra service fee for using this escrow application?

Accepted Answer

Yes — Vaultion charges a tiered platform fee based on escrow size: 4% for $50–$499, 3% for $500–$4,999, and 2% for $5,000 and up (minimum escrow $50). It's paid in the same stablecoin when you create the escrow — shown in full on the Pricing step before you confirm — and goes to Vaultion separately from the escrowed funds, not skimmed from the payout. Kleros arbitration is not part of this fee: it applies only if a dispute is raised, is paid in ETH by the disputing party, and is read live from Kleros at that moment rather than being a fixed percentage.

Question 4

How do we handle partial payments for physical or digital imperfections?

Accepted Answer

Either party can propose a custom split — for example, "70% to Seller, 30% back to Buyer." If both parties accept the split signature, the contract executes it instantly. If they cannot agree, the dispute goes to arbitration for a binding verdict — your choice of independent Kleros jurors or a Vaultion reviewer on Ethereum, and a Vaultion reviewer on every other network.

Question 5

What stablecoins are supported, and why not volatile assets?

Accepted Answer

We support USDC, USDT, DAI, and PYUSD (Ethereum only — Paxos does not issue PYUSD on the L2s) — all USD-pegged ERC-20 stablecoins. Volatile assets like ETH or BTC introduce price risk during the escrow period; if the asset drops 30% overnight, the deal value collapses. Stablecoins ensure both parties know exactly what they agreed to at payout.

Question 6

If there's a refund, how does the buyer get their crypto back?

Accepted Answer

If the Seller cancels or triggers a refund, the smart contract sends the full deposit amount back to the Buyer's wallet address automatically. No withdrawal forms, no wait times, no intermediary approval needed.

Question 7

What happens if neither party responds after funds are deposited?

Accepted Answer

The contract has a configurable timeout (default 7 days). If neither party takes action after the delivery window expires and no dispute is raised, the Seller — or anyone — can trigger the release. Nothing moves on its own: the call credits the Seller inside the contract, and they collect it themselves. This protects Sellers from Buyers who simply ghost after receiving their delivery.

How Crypto Escrow Works under the Hood