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

# Escrow

> Funds held safely in a Circle wallet until delivery is confirmed.

Conduit Escrow protects both buyer and seller in a peer-to-peer transaction. The buyer locks USDC before anything is delivered. Funds are held securely until the buyer confirms receipt — then released instantly to the seller.

<Note>
  All escrow funds are held in a **Circle Developer-Controlled Wallet** — a secure MPC wallet managed by Circle. No private keys are stored in Conduit's database.
</Note>

## How it works

<Steps>
  <Step title="Seller creates the escrow link">
    Set title, description, amount, and a delivery window.
  </Step>

  <Step title="Buyer pays">
    USDC is locked in a dedicated Circle wallet. Status becomes HOLDING.
  </Step>

  <Step title="Seller delivers">
    The seller completes the work or delivers the goods.
  </Step>

  <Step title="Buyer confirms receipt">
    Funds release instantly to the seller. Status becomes RELEASED.
  </Step>
</Steps>

If the buyer doesn't confirm or dispute within 7 days after delivery, funds auto-release to the seller.

## Escrow statuses

| Status      | Meaning                                |
| ----------- | -------------------------------------- |
| `ACTIVE`    | Created, waiting for buyer to pay      |
| `HOLDING`   | Buyer paid — funds locked              |
| `CONFIRMED` | Buyer confirmed — release in progress  |
| `RELEASED`  | Funds transferred to seller            |
| `DISPUTED`  | Buyer raised a dispute                 |
| `MEDIATION` | Both sides responded — awaiting review |
| `CANCELLED` | Escrow refunded to buyer               |

## Disputes

If something goes wrong, the buyer can raise a dispute before confirming receipt. Both parties have 48 hours to submit evidence. Auto-resolution applies: if the seller goes silent for 48 hours funds are refunded to the buyer; if the buyer goes silent after the seller responds funds release to the seller; if both respond it escalates to the AI Dispute Agent or admin review.

## Fees

Conduit takes 0.5% of the escrow amount on release, deducted from the amount transferred to the seller. No fee is charged if the escrow is refunded.