Initialization

An escrow contract becomes active, or initializes, only after both parties have deposited the required amounts into the contract. Prior to this initialization, the funds deposited by either party are withdrawable, offering flexibility before the contract is fully established.

Once the contract is initialized, which occurs after both parties fulfill the deposit requirements, the withdrawal option is disabled. This marks a significant stage in the escrow process as it transitions the transaction into reconcilation state, where the funds are now firmly held within the escrow contract.

Upon initialization, decision buttons are displayed to both parties. These buttons are for determining the outcome of the escrow. The only way for either party to retrieve their safety deposits, and to proceed with either the execution of the asset transfer or the refund of the escrow amount, is through mutual agreement on the escrow's outcome. Both parties must arrive at the same decision regarding the transaction for it to proceed to its conclusion, whether that be the completion of the transfer or a refund. This mechanism enforces the parties to reconcilate for a beneficial outcome for both, and ensures the protocol's decentralization.