Escrow System

The KayakNet Escrow System provides trustless cryptocurrency transactions for the marketplace.

How It Works

┌─────────┐         ┌─────────┐         ┌─────────┐
│  Buyer  │         │ Escrow  │         │ Seller  │
└────┬────┘         └────┬────┘         └────┬────┘
     │                   │                   │
     │  1. Create Order  │                   │
     │──────────────────▶│                   │
     │                   │                   │
     │  2. Pay to Escrow │                   │
     │──────────────────▶│                   │
     │                   │                   │
     │                   │  3. Notify Seller │
     │                   │──────────────────▶│
     │                   │                   │
     │                   │  4. Ship Item     │
     │                   │◀──────────────────│
     │                   │                   │
     │  5. Receive Item  │                   │
     │◀ ─ ─ ─ ─ ─ ─ ─ ─ ─│                   │
     │                   │                   │
     │  6. Confirm       │                   │
     │──────────────────▶│                   │
     │                   │                   │
     │                   │  7. Release Funds │
     │                   │──────────────────▶│
     │                   │                   │

Supported Cryptocurrencies

Currency	Symbol	Privacy Level
Monero	XMR	Maximum (default private)
Zcash	ZEC	High (shielded addresses)

Why These Currencies?

• Bitcoin - Not supported (transparent blockchain)

• Monero - Ring signatures, stealth addresses

• Zcash - Zero-knowledge proofs

Order States

State	Description	Duration
created	Order initiated, awaiting payment	24 hours
funded	Payment received, held in escrow	Until shipped
shipped	Seller marked as shipped	14 days
completed	Buyer confirmed receipt	Final
disputed	Dispute opened	Until resolved
refunded	Funds returned to buyer	Final
expired	Order timed out	Final

Creating an Escrow

For Buyers

1. Click "BUY" on a listing

2. Select currency (XMR or ZEC)

3. Enter delivery info (encrypted)

4. Review order details

5. Click "CREATE ORDER"

You'll receive:

• Escrow Address - Where to send payment

• Amount - Exact crypto amount

• Expiry - Time limit for payment

Payment

Send the exact amount to the escrow address:

Amount: 0.00123456 XMR
Address: 44zFk33yjuwLLWSkj1i2JMiiNX9HifKinA8v...
Fee: 2.5% (included)
Expires: 24 hours

Important:

• Send the EXACT amount shown

• Include enough for network fees

• Use correct currency network

Confirmation

After payment:

1. Transaction broadcasts to network

2. KayakNet monitors for confirmations

3. Required confirmations: 10 (XMR), 6 (ZEC)

4. State changes to "funded"

5. Seller notified automatically

For Sellers

When Order is Funded

1. Check SALES tab in marketplace

2. Order shows "FUNDED" state

3. Delivery info is decrypted

Fulfilling Order

1. Ship the item

2. Click "MARK AS SHIPPED"

3. Enter tracking info (optional)

4. State changes to "shipped"

Receiving Payment

• Buyer confirms → Funds released instantly

• 14 days pass → Funds auto-release

• Dispute → Wait for resolution

Disputes

Opening a Dispute

As a buyer, if something's wrong:

1. Go to order details

2. Click "OPEN DISPUTE"

3. Select reason:

   • Item not received

   • Item not as described

   • Wrong item

   • Damaged item

   • Other

4. Describe the issue

5. Upload evidence (photos, screenshots)

Dispute Resolution

1. Seller Response - 48 hours to respond

2. Evidence Review - Both parties submit proof

3. Mediation - Network mediators review

4. Decision - Funds released or refunded

Auto-Resolution

If no response:

• Buyer dispute → Refunded after 7 days

• Seller dispute → Released after 7 days

Fees

Fee Type	Amount	When
Platform Fee	2.5%	On completion
Network Fee	Variable	On each transaction
Dispute Fee	1%	If dispute filed

Platform fees fund network operations and development.

Security

Key Protection

• Escrow wallets on bootstrap node

• Multi-signature for large amounts (coming)

• Cold storage for reserves

Address Generation

Each order gets a unique address:

Order: #1234
├── XMR subaddress: unique per order
└── ZEC z-address: unique per order

No Custodial Risk

• Funds held minimum time

• Released immediately on confirmation

• No pooling of buyer funds

Manual Confirmation

If automatic payment detection fails:

1. Go to order details

2. Click "MANUAL CONFIRM"

3. Enter transaction ID (TXID)

4. Submit

This is useful when:

• Wallet sync is behind

• Network congestion

• Unusual transaction

API Reference

Create Escrow

POST /api/escrow/create
{
  "listing_id": "abc123",
  "currency": "XMR",
  "buyer_address": "44zFk...",
  "delivery_info": "encrypted..."
}

Check Status

GET /api/escrow/status?id=abc123

Mark Shipped

POST /api/escrow/ship
{
  "escrow_id": "abc123",
  "tracking_info": "optional"
}

Confirm Receipt

POST /api/escrow/release
{
  "escrow_id": "abc123"
}

Best Practices

For Buyers

• Verify seller reputation first

• Pay exact amount shown

• Check address carefully

• Confirm receipt promptly

• Keep transaction records

For Sellers

• Ship promptly when funded

• Provide tracking when possible

• Communicate with buyers

• Keep shipping receipts

• Respond to disputes quickly

Troubleshooting

Payment Not Detected

1. Verify you sent correct amount

2. Check transaction confirmed

3. Use manual confirmation

4. Wait for wallet sync

Funds Not Released

1. Check if buyer confirmed

2. Wait for auto-release (14 days)

3. Contact support if stuck

Order Expired

• Payment wasn't received in time

• Create new order

• Use faster confirmation next time