Smart Contract Escrow: How Your Money Is Protected
When you back a drop, your payment goes into a smart contract rather than a company wallet. Here is how escrow works and why it matters.
What Is Escrow?
Escrow means a third party holds funds until conditions are met. In traditional commerce, that third party is a bank or payment processor. On limited.live, it is a smart contract, which is code that executes automatically.
How Our Escrow Works
1. You back a drop. Your USDC goes into the escrow contract.
2. MOQ check. The contract tracks how many orders have been placed.
3. MOQ met? Funds are released to the brand in stages tied to production milestones.
4. Fulfillment. Once the order ships, the contract completes the release cycle.
Why Smart Contracts Work Well for This
- ●Transparent. The code is on-chain and anyone can verify the rules.
- ●Automatic. There are no manual approvals or processing delays.
- ●Trustless. You do not need to trust us because the contract enforces the rules.
What Happens If Something Goes Wrong?
If a brand fails to deliver, the milestone-based release system means they don't get all the funds upfront. This protects backers and incentivizes brands to deliver on time.
