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

# Escrow Explained

> How the Sendovex smart contract escrow works and why your funds are safe.

The Sendovex escrow is a smart contract deployed on the Polygon blockchain. It is the core trust mechanism that makes P2P trading safe without either party needing to trust the other.

<CardGroup cols={3}>
  <Card title="Safe for buyers" icon="shield-check">
    Crypto is locked before you send fiat. The merchant cannot move it without your confirmation.
  </Card>

  <Card title="Safe for merchants" icon="store">
    You only release escrow after confirming fiat is in your account. No screenshots can fool the contract.
  </Card>

  <Card title="No custody" icon="lock-open">
    Sendovex holds zero access to principal escrow funds. The smart contract is the sole custodian.
  </Card>
</CardGroup>

## What escrow does

When a buyer creates a trade, the merchant deposits the agreed crypto amount into the escrow contract. The contract holds those funds under strict rules:

* **Only the buyer can receive the crypto**: when the merchant taps Release, funds go straight to the buyer's Sendovex Smart Wallet
* **Only the merchant can get the crypto back**: if a dispute is resolved in the merchant's favour, or the trade times out, funds return to the merchant
* **A platform fee is deducted at the point of locking**: Sendovex takes its fee from the gross amount during the lock step. The buyer receives the net amount. See [Fees](/fees) for the rate schedule.

## Why this is safe for buyers

Once the merchant has funded escrow, the crypto is locked and cannot be moved by the merchant without your confirmation or a Sendovex dispute resolution. If a merchant stops responding after escrow is funded, open a dispute from the trade screen. A Sendovex admin will review the evidence and can resolve it in your favour if you have proof you sent fiat.

## Why this is safe for merchants

The buyer cannot receive the crypto until either:

1. You manually tap **Release** after confirming fiat received, or
2. A Sendovex admin reviews a dispute and resolves it in the buyer's favour

Never release escrow based on a screenshot. Check your actual bank balance.

## Escrow timeout

Each trade has a timeout set at creation. If the trade sits at the escrow-funded stage long enough without the buyer marking fiat as sent, the timeout expires. After timeout, the merchant can trigger a withdrawal through the trade screen and the crypto is returned to them. The trade moves to a timed out state, not a cancelled state.

## On-chain verification

Every escrow deposit and release is recorded permanently on the Polygon blockchain. You can verify any transaction using your trade's escrow address on [Polygonscan](https://polygonscan.com).

<Note>
  Sendovex holds zero custody over the principal escrow funds beyond the platform fee. The smart contract is the custodian.
</Note>