Milestones & Payment Terms
How FlowEscrow uses evidence-based buyer approval to release payments at each trade milestone.
Evidence-Based Milestone Payment
When a trade milestone is reached, the seller claims it on the dashboard and the buyer reviews evidence before approving payment release on-chain.
5 Payment Templates
Create fully custom terms, or choose from proven payment structures used in international trade.
Define your own milestone structure. Choose 1 to 5 milestones with custom labels, percentage splits, approval periods, and dispute timeouts.
Full payment on document presentation. Simple and fast for small or repeat trades.
Pay 30% upfront, 70% on shipment documents. Standard two-stage payment for international trade.
Production, shipment, and delivery. Best for manufacturing or high-value trades.
Full amount released 30 days after document presentation. Usance L/C equivalent.
How Milestone Approval Works
Every milestone follows the same transparent process. The seller claims completion, and the buyer verifies before funds are released on-chain.
Claim → Review → Approve
| Step | Actor | Action |
|---|---|---|
| 1 | Seller | Claims milestone on the dashboard when the agreed condition is met |
| 2 | Seller | Uploads supporting evidence (shipping receipts, photos, tracking screenshots) |
| 3 | Buyer | Receives email notification and reviews the claim with evidence on the dashboard |
| 4 | Buyer | Approves (funds released on-chain) or rejects (dispute window opens) |
Approval Timeout
Each milestone has a configurable approval period. If the buyer does not approve or reject within this period, funds are automatically released to the seller. This prevents indefinite fund locking and protects the seller from unresponsive buyers.
What Happens When a Buyer Rejects
If the buyer rejects a milestone, the dispute resolution process begins. Both parties have the opportunity to resolve the disagreement.
Resolution Process
Both parties can submit evidence (documents, photos) and negotiate directly through the dashboard.
Either party can propose a resolution split, and once both parties agree, the smart contract automatically distributes the funds. Up to 3 counter-offer rounds are allowed.
If no resolution is reached within the dispute timeout period, remaining funds are returned to the buyer as the default outcome.
Global Escrow Timeout
Every escrow has a maximum lifetime to prevent funds from being locked indefinitely.
How It Works
Each escrow has a global timeout period (default: 180 days). If the seller never claims any milestone within this period, either party can trigger the timeout resolution on-chain.
By default, remaining funds are returned to the buyer — the original depositor. This protects buyers from permanently locked funds when a trade falls through.
Custom escrows allow both parties to agree on an alternative: auto-release to the seller instead of buyer refund.
Seller Protection
The global timeout only applies when no milestones are claimed. Once the seller claims a milestone, the approval timeout (default: 14 days) takes priority — if the buyer does not respond, funds auto-release to the seller. Sellers who perform their obligations are always protected.
Smart Contract Guarantees
Every escrow is a self-executing smart contract on the Alephium blockchain. Key properties:
Contract Properties
Funds are locked in the contract — neither party can withdraw unilaterally.
Milestone release percentages are immutable once the escrow is created.
Protocol fee (1.0%) is deducted at each milestone release, not upfront.
After all milestones complete, the contract self-destructs and returns remaining ALPH to the protocol.
Neither buyer nor seller pays gas fees — the protocol covers all transaction costs.
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