1.6 Understanding Escrow Protection
How CryptoBazaar's escrow system works to protect both buyers and sellers during every trade.
§What Is Escrow?
Escrow is a financial arrangement where a trusted third party holds assets on behalf of two transacting parties until the terms of the transaction are fulfilled. In the context of P2P crypto trading, escrow means that the seller's cryptocurrency is locked and held by CryptoBazaar during the trade.
This prevents situations where a seller could take payment without delivering crypto, or where a buyer could receive crypto without making payment. The escrow acts as a guarantee that both sides will fulfill their obligations.
§How Escrow Works on CryptoBazaar
When a buyer initiates a trade, the seller's USDT or USDC is automatically locked in escrow. This happens instantly and the seller cannot access or move these funds while the trade is active.
The escrow holds the crypto until one of three things happens: the seller manually releases the funds after confirming payment, the trade is cancelled by mutual agreement, or CryptoBazaar's support team makes a decision following a dispute.
No single party can unilaterally access the escrowed funds. This creates a secure environment where both the buyer and seller can transact with confidence.
§How Escrow Protects Buyers
As a buyer, escrow ensures that the USDT you are purchasing actually exists and is reserved for your trade. When you see that the escrow is locked, you can proceed with your INR payment knowing that the crypto is set aside for you.
If the seller fails to release the escrow after you have made payment, you can raise a dispute. CryptoBazaar will review the evidence (payment confirmation, bank statements) and release the funds to you if your payment is verified.
§How Escrow Protects Sellers
As a seller, escrow protects you by ensuring that your crypto is only released when you explicitly confirm payment receipt. You have full control over when to release the escrow.
If a buyer claims to have paid but you do not see the funds in your bank account, you are under no obligation to release. You can raise a dispute, and CryptoBazaar will investigate before any funds are moved.
The escrow system also protects you from chargebacks. Once you release the crypto, the transaction is final on the blockchain. However, if a buyer attempts a chargeback on their bank payment after receiving crypto, CryptoBazaar's dispute process and the evidence trail will support your case.
STILL NEED HELP?
Our support team is available 24/7 for urgent disputes or verification issues.