⚖️ Walletless Escrow System

Step 1: Order Creation

When you place an order:

• DrugHub generates a unique multi-signature escrow address
• This address requires 2 of 3 signatures to release funds:
  • Your signature (buyer)
  • Vendor's signature
  • DrugHub's signature (mediator)
• You send XMR directly to this escrow address
• Important: DrugHub admins CANNOT access these funds alone

Step 2: Product Shipment

• Vendor sees payment in escrow
• Vendor ships product
• Order status: "Shipped"

Step 3: Successful Delivery (Normal Scenario)

• You receive package
• You click "Finalize Order"
• Your signature + Vendor's signature = Funds released
• Vendor receives payment
• DrugHub takes small commission

Step 4: Dispute (If Problems Occur)

• You open dispute
• DrugHub mediator reviews evidence
• Mediator decides fair outcome
• Mediator's signature + Your/Vendor's signature = Resolution

DrugHub admins physically cannot steal your money because:

• Funds locked in multi-signature escrow
• Requires 2 of 3 signatures (admin signature alone = useless)
• No central wallet holding everyone's funds
• Each order has separate escrow contract
• Smart contract code is immutable

Even if DrugHub is compromised or shut down, your funds in active escrows remain safe until resolved.

🟡 Pending Payment

• Order created but not funded
• Send XMR to escrow address provided
• Wait for 10 confirmations (~20 minutes)

🟠 Processing

• Payment confirmed in escrow
• Vendor preparing/packing order
• Usually 1-3 days

🟢 Shipped

• Vendor marked order as shipped
• Package in transit
• Tracking provided (if applicable)
• Auto-finalize countdown started (usually 14 days)

✅ Completed

• You finalized order manually
• OR auto-finalize deadline reached
• Funds released to vendor
• Leave review

❌ Disputed

• Issue with order
• Mediator reviewing
• Provide evidence
• Wait for resolution

🔄 Refunded

• Order canceled or dispute resolved in your favor
• Full or partial refund issued
• Funds returned to your wallet

Buyer Wins (100% Refund)

• No shipping proof from vendor
• Fake tracking provided
• Completely wrong product
• Vendor admits fault

Vendor Wins (100% Payment)

• Valid shipping proof provided
• Product as described
• Buyer unreasonable demands
• Buyer trying to scam

Split Decision (Partial Refund)

• Package lost in mail (not vendor's fault, but buyer didn't receive)
• Minor discrepancy (e.g., 0.8g instead of 1g)
• Lower quality than expected but not scam
• Typical split: 50/50 or 70/30

Q: How long do funds stay in escrow?

A: Until you finalize or auto-finalize period ends (typically 14 days after shipping).

Q: Can I cancel an order after funding escrow?

A: Only if vendor hasn't shipped yet. Contact vendor immediately and open a dispute if they don't respond.

Q: What if DrugHub goes down during my order?

A: Your funds remain locked in multi-signature escrow. When market returns, your order continues normally. In worst case, recovery process would be initiated.

Q: Can I get a refund for partial delivery?

A: Yes, open a dispute and explain. Mediator will typically award partial refund proportional to what's missing.

Q: How are disputed orders resolved?

A: Mediators review evidence from both parties and make fair decision. Most disputes resolved within 3-7 days.

Key Generation Phase

When you place an order, three parties each generate partial keys:

• Buyer (You): Your wallet generates a partial key for this specific escrow
• Vendor: Their wallet generates a partial key
• DrugHub (Mediator): The market generates a partial key

These partial keys are combined to create a unique escrow address. No single party controls this address - it requires cooperation of at least two parties.

Fund Locking

When you send XMR to the escrow address:

• Funds are cryptographically locked to the 2-of-3 multisig address
• No individual party can move the funds alone
• The transaction appears as a normal Monero transaction on the blockchain
• DrugHub monitors for incoming payments and updates order status

Release Mechanisms

Funds can only be released through specific combinations:

• Buyer + Vendor: Normal finalization (buyer satisfied, finalizes order)
• Buyer + DrugHub: Dispute resolved in buyer's favor
• Vendor + DrugHub: Dispute resolved in vendor's favor, or auto-finalize

Centralized Escrow Risks

• Exit Scam: Admins can disappear with all funds at any time
• Hack Target: Centralized hot wallets are attractive targets
• Selective Scamming: Admins can steal from large orders
• Law Enforcement Seizure: Seized markets result in total fund loss
• History: Evolution, Sheep Marketplace, Wall Street Market all exit scammed

Walletless Escrow Benefits

• Exit Scam Impossible: Admins physically cannot access funds alone
• No Hot Wallet: No centralized target for hackers
• Distributed Risk: Each order is a separate escrow contract
• Seizure Resistant: Law enforcement cannot seize what's not centrally held
• Mathematically Enforced: Security is cryptographic, not promise-based

You: Order product, send 0.5 XMR to escrow address

Escrow: Funds locked in 2-of-3 multisig

Vendor: Sees payment, ships product

You: Receive package, click "Finalize"

Result: Your signature + Vendor's signature releases funds to vendor

DrugHub's role: Facilitates process but doesn't touch funds

You: 14 days pass, no package

Action: Open dispute with evidence (order date, expected delivery)

Vendor: Provides shipping proof (or cannot)

Mediator: Reviews - if vendor has no proof, rules in your favor

Result: DrugHub signature + Your signature releases funds back to you

You: Receive product, quality is 50% of advertised

Action: Open dispute with photos, lab test results if applicable

Vendor: Disputes claim or offers partial refund

Mediator: Reviews evidence, decides 50% refund appropriate

Result: Split release - 50% to you, 50% to vendor

Event: Law enforcement seizes DrugHub infrastructure

Traditional Market: All funds in hot wallet seized - total loss

DrugHub: Funds remain in individual multisig escrows

Recovery: Community-driven recovery process can be initiated

Result: Users retain control over their funds through multisig keys

Documentation from Day One

• Screenshot order confirmation immediately after placing
• Save all messages with vendor (encrypted copies if possible)
• Note expected delivery timeframe based on vendor's listing
• Keep tracking information if provided

Evidence That Wins Disputes

• Photos: Unopened package (showing postmark), contents, weight on scale
• Timestamps: Photos should include date/time visible
• Comparisons: Product next to listing description
• Testing: Reagent test results for substance verification
• Communication: Screenshots of vendor conversations

What to Avoid

• Threatening vendors - this hurts your case
• Making claims you can't prove
• Opening dispute before giving vendor chance to respond
• Accepting "off-market" resolution offers
• Destroying evidence (keep package, contents until resolution)

Q: What happens to my funds if I lose my DrugHub account access?

A: Funds in pending escrow remain locked until the order resolves (finalization or auto-finalize). If you regain account access before auto-finalize, you can finalize normally. Contact DrugHub support for account recovery options.

Q: Can vendors see my real identity through escrow?

A: No. The escrow system uses Monero's privacy features. Vendors only see the encrypted shipping address you provide. They cannot link your payment to your real identity through the escrow transaction.

Q: Is there a minimum or maximum escrow amount?

A: Minimum is typically set by vendors (usually equivalent to $10-20). Maximum depends on vendor's escrow limit, which increases with their trust level. Top vendors may handle large orders; new vendors have lower limits.

Q: What if I accidentally finalize before receiving?

A: Once finalized, funds are released and cannot be reversed through the escrow system. Contact the vendor directly - reputable vendors often work to resolve issues even post-finalization. This is why we emphasize: never finalize before confirming receipt.

Q: How does escrow handle international orders with long shipping times?

A: The auto-finalize timer accounts for international shipping. If you're concerned about timing, message the vendor to confirm expected delivery window. You can open a dispute to pause auto-finalize if shipping is legitimately delayed.

Q: Are escrow transaction fees taken from buyer or vendor?

A: Buyers pay no escrow fees. The commission (4-7%) comes from the vendor's payout when escrow releases. Network fees for the release transaction are also covered by the commission.