Escrow holds funds securely until work is approved. It protects both you and your client — you know payment is guaranteed, and your client knows their money is safe until they're satisfied.
What is it?
Escrow is a financial arrangement where funds are held by a trusted third party (the Stellar blockchain) until specific conditions are met. In Orka, escrow releases payment when a milestone is approved.
Why does Orka use it?
- Security — Funds are locked on the Stellar blockchain, not held by Orka
- Trust — Both parties know the money is safe
- Automation — Smart contracts handle release without manual processing
- Transparency — All transactions are recorded on-chain
How does it work?
- Client funds escrow — Deposits are locked in a smart contract on Stellar
- Work begins — You deliver on milestones
- Milestone approval — Client reviews and approves the deliverable
- Funds release — Smart contract releases payment to your wallet
- Record created — Transaction is recorded on-chain and in Orka
When should you use it?
- New clients — Always use escrow until trust is established
- Projects over $1,000 — The protection is worth it
- Long engagements — Milestone-based escrow improves cash flow
- International payments — Escrow provides security across borders
Common misconceptions
- "Orka holds my money" — No, funds are on the Stellar blockchain. Orka never has custody
- "Escrow is slow" — Stellar transactions confirm in 3-5 seconds
- "Escrow is expensive" — Stellar network fees are fractions of a cent
- "I can't get a refund" — If work isn't completed, both parties can agree to release funds