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Authorization & accountability

Controls on a release

Live

Money moves only on a direction the parties authorized, in advance in the agreement or at release time, and how many people must act depends on how the milestone is proven and on the amount.

The controls

Control What it is Status
Party thresholds Depositors and beneficiaries each approve to the threshold the agreement sets Live
Independent verifier The party that confirms a milestone can’t be a party to the escrow Live
Release quorum Independent approvers co-sign before a release executes; the quorum can rise with the amount (for example two approvers from 10,000 and three from 100,000) Live
Multi-key signing Larger releases need more of the escrow agent’s officers, each signing with their own key Live
Mandate limits Automation acts only within a signed, scoped, expiring mandate, up to an amount per release in each currency; above it the release waits for the parties Live
Limits by kind of proof The agreement sets the largest release each kind of evidence may unlock on its own; above it the parties approve Live
Challenge window A pause between verification and release in which a party can still dispute Live
Dispute pause A dispute pauses any pending release, whatever the proof Live
Oracle quorum Several independent data feeds must agree before a machine signal counts Live
Document examination A letter-of-credit bank co-holding the money checks presented documents comply before it countersigns; discrepancies hold the release until the depositor waives them or new documents comply Live (milestone releases)
Cancellation by all Every depositor and beneficiary approves, then any one of them carries it out Live
Release step-up Each approver authenticates at high assurance, bound to the release transaction (see Assurance levels) Rolling out

How a release flows, by kind of proof

Oracle signal Attested proof Audited proof
Evidence A machine record: a carrier scan, a sensor reading, a system event A signed statement by a named party: a bill of lading, a delivery receipt, a surveyor’s report A licensed auditor’s or inspector’s countersigned attestation
Verified by The oracle, automatically, within the agreement’s policy The independent verifier The verifier, relying on the auditor’s countersignature
Direction to release Given in advance in the agreement The verification, plus non-objection within the challenge window, or explicit approval above an amount Explicit: the parties with a financial interest, and any co-holder that examines the documents
Speed Seconds, to the end of any window Hours to days Days
Main risk A wrong or compromised feed pays out automatically A forged or mistaken document Time and cost
Mitigation Several feeds, amount caps, a window to dispute, a pause on any dispute A window to dispute, an independent verifier Fits high-value and regulated trade

Each milestone carries its kind of proof, and its release policy follows from it: release automatically, release after the window, or release on explicit direction. The quorum and multi-key signing apply by amount, so small automated milestones stay fast while large ones need more people.

The escrow agent checks and directs each release; the asset custodian, which holds the money, executes it. They can be separate institutions or one. See Settlement & custody.