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Kleros Escrow Interface

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Escrow

Kleros Escrow is a decentralized escrow platform that secures blockchain transactions between untrusted parties. It combines smart contract automation with Kleros’ decentralized arbitration system to provide trustless transaction security for digital commerce. Traditional online transactions require trust between strangers, creating opportunities for fraud and disputes. Kleros Escrow eliminates this trust requirement by securing funds in smart contracts and delivering decentralized arbitration through Kleros Court when agreements fail.

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V1 - Production Protocol

Escrow V1 runs on Ethereum Mainnet. Two parties lock funds in a smart contract, with Kleros Court available as the dispute resolution mechanism if they disagree.
  • Network: Ethereum Mainnet
  • Model: Two-party escrow with basic settlement
  • Tokens: ETH and standard ERC-20 tokens (non-standard tokens such as USDT are not supported)
  • Evidence & appeals: Handled by the escrow contract

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V2 - Next-Gen Upgrade

Escrow V2 runs on Arbitrum and adds structured settlement negotiation, multi-token support (ETH, USDC, USDT, DAI, or any ERC-20 via SafeERC20), and moves evidence and appeal handling to the Court.
Escrow V1 interface, screenshot to be added

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What Changed in V2

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Current Status

As of the May 2026 development update, Escrow completed its Atlas IPFS migration, with UX improvements to the agreement upload step. Follow development on the Kleros blog - developer updates.

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Key Capabilities

Smart Contract Security

Funds secured in smart contracts before service delivery

Settlement Negotiation

Structured negotiation process for partial disputes

Multi-Token Support

Pay with ETH, USDC, USDT, DAI, or any ERC20 token

Decentralized Arbitration

Kleros Court resolves disputes when agreements fail

Zero Platform Fees

Completely free to use-only pay network gas fees

Automatic Enforcement

Smart contracts automatically execute rulings

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How It Works

1

Creation

Buyer creates escrow transaction specifying seller, amount, deadline, and terms.
2

Fund Locking

Payment is secured in the smart contract using ETH or chosen token.
3

Delivery Period

Seller provides agreed service/product before the specified deadline.
4

Resolution

Transaction concludes through payment, settlement, manual deadline execution, or arbitration.

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Resolution Mechanisms

Kleros Escrow V2 provides multiple ways to resolve transactions:
When parties fully agree
  • Full Payment: Buyer releases entire amount to seller when satisfied
  • Full Refund: Seller returns entire amount to buyer if unable to deliver
  • Partial Transactions: Either party can process partial amounts for completed portions

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V2 Improvements

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Token Selection

1

Choose Payment Type

Select ETH, pick from popular tokens, or enter a custom token address
2

Verification

System verifies the token works with Escrow
3

Set Amount

Enter your amount and proceed with the transaction
Token transactions may have maximum amount caps set by governance for risk management.

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Use Cases

A marketing agency and client use escrow for a social media campaign. If the client is partially satisfied, they can propose a settlement amount. The agency can accept, counter-propose, or proceed to dispute resolution.
Traders exchanging ETH for assets on other blockchains use escrow for security. One party locks ETH while the other transfers external assets. If issues arise, parties can negotiate or use dispute resolution.
A company hires a developer for a web application. The developer works knowing payment is secured, while the company can test the deliverable and release payment, negotiate, or dispute if necessary.
An artist sells custom artwork to a collector through escrow. The buyer has until the deadline to inspect. If there are quality concerns, the buyer can propose partial payment or raise a dispute.

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Cost Structure

The settlement negotiation feature often prevents disputes entirely by enabling parties to reach partial agreements, saving on potential arbitration costs.

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Benefits

  • Payment Protection: Funds remain secure until delivery confirmation
  • Quality Assurance: Clear recourse for non-delivery or substandard work
  • Flexible Resolution: Settlement negotiation for partial completion
  • Fair Arbitration: Access to impartial Kleros Court
  • Partial Payments: Release funds incrementally as work progresses

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Best Practices

For Buyers

  • Set realistic deadlines (execution requires manual triggering)
  • Define clear deliverables
  • Keep communication records for potential disputes
  • Consider milestone payments for large projects

For Sellers

  • Verify escrow funding before starting work
  • Document progress and communications
  • Communicate proactively about delays
  • Understand deadline implications
For Both Parties:
  • Use detailed descriptions with clear terms and success criteria
  • Keep all communication records as evidence
  • Understand that settlement proposals don’t transfer funds until accepted
  • Consider settlement before escalating to disputes

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Getting Started

1

Connect Wallet

Use MetaMask, Rabby, or any compatible Web3 wallet
2

Choose Payment

Select ETH or your preferred token
3

Create Transaction

Specify counterparty, amount, terms, and realistic deadline
4

Fund Escrow

Transfer payment to the secure smart contract
5

Track & Resolve

Monitor status, then release payment, negotiate settlement, or dispute

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What’s Next?

Create Escrow

Start a new escrow transaction

Integration Guide

Build escrow into your application

Dispute Resolution

Learn how Kleros Court works

Launch Escrow

Open the Escrow application

Contract Addresses

Escrow V2 deployment addresses