How escrow works

Escrow is what makes trading with a stranger safe. The seller's crypto is locked by CoinHubX for the length of the trade, so the buyer knows it is there and the seller knows it can't be taken until they confirm payment.

When the crypto is locked

The moment a buyer opens a trade, the amount is moved from the seller's available balance into escrow. It stays there until the trade is completed, cancelled or decided in a dispute.

When it is released

The seller releases the escrow after confirming the buyer's payment has arrived. Release is a deliberate action by the seller; CoinHubX does not release it automatically on the buyer's say-so.

When a trade is cancelled

If the buyer cancels, or the payment window runs out without a payment being marked, the escrow goes back to the seller.

Disputes

If the buyer says they have paid and the seller disagrees, either side opens a dispute. The escrow stays locked while a CoinHubX mediator reviews the trade chat and the payment proof, then it is released to the right person.

What escrow does not cover

Escrow protects the crypto side of the trade. The fiat payment goes directly between buyer and seller, which is why you should only ever pay through the method shown on the trade and keep your proof.