ESCROW PROVIDERS
Settlement without blind trust.
Kronex is designed to support independent financial providers offering liquidity, escrow and execution services inside the network economy.
01 · WHAT THIS PROVIDER DOES
What this provider does
Funds can be locked and released according to predefined settlement conditions.
Two unknown parties should not need to trust each other before doing business. Kronex plans to support independent Escrow Providers capable of securing transactions between buyers and service providers.
02 · WHAT ORDERS IT RECEIVES
What orders it receives
Possible applications
- compute orders
- infrastructure contracts
- OTC transactions
- large resource purchases
- milestone-based payments
03 · REQUIREMENTSSpecification pending
Requirements
Indicative until specified. These are the categories an escrow provider is expected to satisfy, not the values it must meet.
- Conditions
- The settlement conditions a provider can hold funds against.
- Custody
- How funds are held and by what mechanism they are released.
- Dispute handling
- What happens when a condition is contested.
- Collateral
- What is staked against the funds a provider holds.
Requirements will be published with the provider framework.
04 · HOW IT IS PAID
How it is paid
Escrow fees are one of the protocol's fee sources. A provider is paid on the funds it holds and releases, settled when the condition it holds against is met.
05 · HOW IT IS MEASURED
How it is measured
- dispute history
- collateral
- successful executions
- response time
Applications can automatically choose providers according to their own requirements.
06 · RISKS AND OBLIGATIONSSpecification pending
Risks and obligations
A provider holds funds on behalf of others against conditions fixed before execution, and stakes collateral against them. A provider that releases wrongly, or fails to release, is exposed to economic penalties where appropriate.
The penalty mechanism is not designed.
- funds held on behalf of others
- conditions fixed before execution
- collateral at stake
07 · ROADMAP DEPENDENCY
Roadmap dependency
Phase 5
Financial Provider Networkplanned
enable independent financial services inside the Kronex economy
- escrow providers
- market makers
- OTC providers
- liquidity routing
- provider collateral
- RFQ markets
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