What is Escrow?

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6 comments

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    liptonmcrain

    What if the seller want to crook you from your money or if he or she decide not to send you your coins you want to buy

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    Dan

    @liptonmcrain This is why you should only trade with escrow. The seller locks the crypto being sold into escrow and it is held securely there while the buyer makes the payment.

    If the seller does not release the crypto from escrow to the buyer once they have received the payment then the buyer can raise a dispute and a LocalCoinSwap dispute resolution manager can release the coins to the buyer manually.

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    Mithun

    Seller need to open an escrow account or it will processed automatically by this site?

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    Dan

    Hi @Mithun,

    Neither traders need to open any additional escrow account.


    Once 2 users agree to trade, the seller will see a "Fund Escrow" button on the trade page. They click this and the crypto is automatically locked in escrow. 

    Once the seller receives the payment, they release the crypto from escrow to the buyer.

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    Jonsnow099

    Please, is it possible for a seller not to see “fund escrow” on a trade page and if yes what conditions can that happen?

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    Dan

    Hi @Jonsnow099

    Once the trade is accepted the seller will see the "Fund Escrow" button.

    They will not see the "Fund Escrow" button at certain stages throughout the stage (as it is not necessary). For example:

    • Before the trade is accepted
    • After the escrow is funded
    • Once the trade is completed or canceled
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