Understanding Escrow
Dark Matter's multi-signature escrow system protects both buyers and vendors in every transaction. Funds stay locked until two of three keyholders agree to release them ā see Why Multi-Signature Escrow below for what that means in practice.
How Escrow Works
- Buyer places an order and funds are held in escrow
- Vendor receives notification of the order
- Vendor ships the product
- Buyer receives and verifies the product
- Buyer releases funds from escrow
- Vendor receives payment
Why Multi-Signature Escrow
Each order's payment sits in a 2-of-3 multi-signature wallet. Three keyholders hold one key each: the buyer, the vendor, and a marketplace moderator. Funds move only when any two of those three sign the release ā no single party can take the money alone.
Normal completion: buyer confirms delivery, both sign, vendor is paid
Dispute refund: evidence supports the buyer, funds return without vendor consent
Dispute payout: evidence supports the vendor, payment releases without buyer consent
That structure is why escrow matters: a vendor cannot grab payment before shipping, and a compromised moderator cannot drain the wallet unilaterally ā they still need a second signature from either the buyer or the vendor.
Finalizing early removes your protection. "Finalize early" (or "FE") means you release escrow before you've received and checked the order. Once funds are released, you have no leverage in a dispute ā a vendor asking you to finalize early "for faster shipment" or "as a favor" is a classic scam pattern. Wait until the order is in your hands and matches the listing, regardless of how trustworthy the vendor seems.
Dispute Resolution
If something goes wrong while funds are still in escrow, open a dispute ā the full process, evidence checklist, and timeline expectations are in the Disputes guide.