How to use on-chain escrow payments in Vaultr

Vaultr’s on-chain escrow uses VaultrEscrow smart contracts (and Bitcoin multisig for BTC) to hold funds until agreed conditions are met. Escrows are approval-based, can be split into milestones, support refunds, and can auto-release on timeout. A treasury fee is taken when funds are released, and the escrow-release fee is 0.10%.

What is on-chain escrow in Vaultr?

On-chain escrow means funds are locked in a VaultrEscrow smart contract instead of being held by a person or company. The contract releases funds only when its conditions are satisfied.

Key properties of Vaultr escrow:

• Approval-based: Release depends on explicit approvals rather than blind trust.
• Multi-milestone: A single escrow can be split into multiple milestones, releasing portions as work or stages complete.
• Refundable: Funds can be returned to the payer under the contract’s rules.
• Auto-release on timeout: If a defined timeout is reached, the contract can release automatically so funds are not stuck indefinitely.

This design lets two parties transact safely without needing to trust each other directly; the rules are enforced by code.

How do milestones and approvals work?

Vaultr escrow is both multi-milestone and approval-based, so you can structure a deal in stages.

• Each milestone represents a chunk of the total escrow amount.
• When a milestone’s conditions are met (for example, a deliverable is completed), that milestone can be approved.
• On approval, the corresponding portion of funds is released from the escrow to the payee.
• After one milestone is released, the next milestone can begin.

If a deadline passes without action, the auto-release on timeout rule can move funds automatically according to the contract’s configuration, preventing funds from being locked forever.

What fee applies to escrow, and when is it charged?

Vaultr charges an escrow-release fee of 0.10%, and a treasury fee is taken at release, not at funding.

• When charged: Only when funds are released from escrow.
• How calculated: All Vaultr fees use BigInt arithmetic, so there is no floating-point rounding.
• Fee tiers: Your effective rate can be lowered with a BMZ fee tier.

Funding the escrow does not trigger the release fee; it is applied at the moment of release.

Does Vaultr support Bitcoin escrow?

Yes. In addition to smart-contract escrow on EVM-compatible chains, Vaultr supports Bitcoin multisig escrow.

• Bitcoin multisig (multi-signature) requires multiple keys to authorize a release.
• This provides escrow-style protection on Bitcoin’s UTXO model without a single trusted custodian.

You can therefore use escrow both on EVM chains (via VaultrEscrow smart contracts) and on Bitcoin (via multisig).

How do I release or refund an escrow?

Releasing escrowed funds is a sensitive wallet action and follows Vaultr’s protected flow:

1. You review the escrow details (amounts, milestones, recipient, and conditions).
2. You confirm the release with your PIN plus wallet 2FA.
3. After confirmation, the release transaction is broadcast on-chain.

Refunds follow the contract’s refund rules and return funds to the payer instead of the payee. The treasury fee is applied at the moment of release.

FAQ

When is the escrow fee charged, at funding or release?

The treasury fee is taken at release, and the escrow-release fee is 0.10%. Funding the escrow does not trigger the release fee.

Can an escrow refund the payer?

Yes. Vaultr escrow is refundable under the contract’s rules, so funds can be returned to the payer rather than only forward to the payee.

What happens if the other party goes silent?

Vaultr escrow supports auto-release on timeout, so a defined deadline can release funds automatically rather than locking them forever.

Is escrow available on Bitcoin?

Yes, via Bitcoin multisig escrow, alongside the VaultrEscrow smart contracts used on EVM chains.

Set up protected payments with the Vaultr smart wallet.