Security deposits aren’t payments. They’re guarantees.
Trustless Work makes that guarantee programmable.
Why Escrow for Security Deposits?
Security deposits are meant to be temporary and refundable, yet most platforms still handle them in ways that create friction:
- Funds are held by the platform or provider
- Refund rules are implicit, not enforced
- Disputes are manual and off-chain
- Users don’t know when or how funds will be returned
This creates mistrust on both sides.
Trustless Work turns deposits into rule-based, non-custodial escrows where outcomes are explicit from day one.
The Core Principle: Refund-First Escrow
In a security deposit flow:
- Funds are expected to return to the user
- Payouts only happen if an exception is validated
- The platform enforces logic — not custody
This is fundamentally different from crowdfunding or freelance payments.
How It Works
1. Initiation
When a booking, rental, or service starts, the platform creates an escrow.
Configuration includes:
- Deposit amount
- Duration or condition window (e.g. checkout date)
- Role assignments
- Platform fee (optional)
All rules are locked into the escrow contract upfront.
2. Funding
The user (guest / renter) deposits stablecoins directly into the escrow.
- Funds are visible on-chain
- No party can move them unilaterally
- Trustless Work never holds the funds
3. Checkout or Service Completion
When the stay or service ends:
- The platform marks the milestone as completed
(e.g. “checkout finished”, “equipment returned”)
This signals the start of the approval window.
4. Approval or Dispute
The landlord / host / service provider reviews the outcome:
- Approve → deposit should be refunded
- Dispute → damages or exceptions claimed
This step creates accountability without giving custody.
5. Fund Release
The platform, acting as the release signer, executes the outcome:
-
Standard case:
Funds are released back to the user (receiver) -
Exception case:
Platform resolves the dispute and releases:- Partial amount to provider
- Remaining balance back to the user
Settlement is instant and transparent.
Roles in the Security Deposit Flow
Security deposits follow a refund-first logic.
Funds default to returning to the depositor unless an exception is approved.
- Depositor (User / Guest) – Provides the security deposit
- Receiver (User / Guest) – Receives the refunded deposit by default
- Initiator (Platform) – Creates and configures the escrow
- Milestone Marker (Platform) – Marks checkout or service completion
- Approver (Landlord / Host / Provider) – Approves refund or raises dispute
- Release Signer (Platform) – Executes fund release
- Dispute Resolver (Platform) – Handles exceptions and partial deductions
- Platform Address – Collects platform fees if configured
We don’t hold funds. We enforce outcomes.
Building with the Product Suite
Platforms can start simple and scale up:
-
Back Office dApp
Manually manage deposits for pilots or early launches -
Escrow API
Programmatically create, approve, dispute, and release deposits -
Next.js SDK
Embed deposit logic directly into booking or checkout flows -
Escrow Viewer
Give users a transparent, read-only view of deposit status -
Demo Lab
Test configurations before production
Example Integration Models
-
Hospitality & Rentals
Platform controls flow, host approves, user gets refunded -
Equipment Leasing
Time-based deposit with inspection approval -
Subscription Services
Auto-refund if no dispute is raised within a window -
High-Trust Platforms
Platform + multisig release for added safeguards
Why This Works
- Non-custodial by design – Platforms never touch user funds
- Clear expectations – Users know deposits are refundable by default
- Fewer disputes – Rules are enforced, not negotiated
- Instant settlement – No banking delays or manual refunds
- Global ready – Stablecoins work across borders
🚀 Want to ship security deposits without custody risk?
Start with the Back Office or explore the API docs to build your own flow.
