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Pre-launch draft. Public for transparency. Not legally binding until StudioLedger officially launches at Version 1.0.

Escrow Terms

Plaster phase · source draft v1.0 (March 2026)·Page last updated 2026-05-13

⚠️ Important Disclaimer

These Escrow Terms are provided for informational purposes. This document has not been reviewed by a qualified legal professional. Before relying on these terms or entering into escrow transactions on the StudioLedger platform, you should obtain independent legal advice from a lawyer qualified in your jurisdiction. StudioLedger strongly recommends you understand all terms, conditions, and risks before transacting.

1. Definitions

Escrow Object: A protocol-level transaction object created on the XRP Ledger (XRPL) that locks funds under predetermined conditions. Escrow objects are cryptographically secured at the blockchain layer and cannot be modified or released except through authorized mechanisms defined below.

Crypto-Condition: A cryptographic commitment mechanism (RFC-compliant, implemented via five-bells-condition library) that locks escrow release until a fulfillment is provided. Consists of:

  • Condition (Hash): A one-way hash derived from a cryptographic preimage. Embedded in the escrow object at creation.
  • Fulfillment (Preimage): The original cryptographic secret that, when hashed, produces the condition. Required to release the escrow.

CancelAfter Date: An absolute block time (ledger timestamp) after which the sender of the escrow (the marketmaker) may unilaterally cancel the escrow and reclaim funds. This mechanism is protocol-enforced by the XRPL and does not depend on StudioLedger.

Escrow Sender (Marketmaker): The user who funds the escrow and retains the right to cancel after the CancelAfter date if no release occurs.

Escrow Receiver (Creator): The user designated to receive funds upon successful escrow release. The creator delivers work and requests release; the marketmaker approves release.

RLUSD: A stablecoin issued by Ripple on the XRP Ledger, pegged to the US dollar. Ripple holds a trust charter from the New York Department of Financial Services (NYDFS). RLUSD is the only supported currency for escrow-protected contracts on StudioLedger.

XRP: The native cryptocurrency of the XRP Ledger. XRP is accepted for instant asset purchases (no escrow).

Issuer: Ripple, the entity that issued RLUSD and controls RLUSD trust lines. The issuer has protocol-level controls (freeze, clawback, trust line authorization) that can affect escrow objects.

Trust Line: A bilateral accounting relationship between an account and the issuer (Ripple) that permits the account to hold and transact RLUSD. All participants in an RLUSD escrow must have active, unfrozen trust lines with Ripple.

Milestone: A discrete deliverable within a contract, each protected by its own separate escrow object. A contract with 3 milestones results in 3 independent escrow objects.

MCC (Minted Craft Credential): A non-fungible token (NFT) minted on the XRP Ledger (XLS-20 token standard) after successful escrow release and marketmaker approval. MCCs serve as portable, verifiable proof of completed work.

Platform Fee: A service fee of 0.98% of the released escrow amount, deducted by StudioLedger at the moment of escrow release (EscrowFinish transaction). This fee compensates the platform for escrow administration, milestone tracking, MCC minting, and dispute resolution infrastructure.

Constructive Custody: A legal concept in which a third party (StudioLedger) holds a cryptographic key (the fulfillment preimage) that grants effective control over funds, even though the funds are locked in a smart contract. The platform's possession of the fulfillment key means the platform can unilaterally decide whether to release funds or allow them to remain locked until CancelAfter.

2. How Escrow Works: Lifecycle Overview

2.1 Contract Negotiation and Acceptance

  1. Marketmaker and creator agree on contract terms (scope, deliverables, milestones, payment).
  2. Contract is created and stored in the Supabase database with status draft.
  3. Both parties review and accept the contract terms.

2.2 Escrow Creation and Funding

  1. Once both parties accept, a separate escrow object is created on the XRPL for each milestone.
  2. Each escrow is configured with:
    • Sender: The marketmaker's XRPL address
    • Destination: The creator's XRPL address
    • Amount: The milestone payment in RLUSD
    • Condition: A cryptographic hash (crypto-condition)
    • CancelAfter: A block time (typically 7 calendar days from funding)
  3. The marketmaker signs and submits the EscrowCreate transaction via Xaman or another authorized wallet.
  4. The XRPL confirms the transaction, and the milestone status changes to funded.
  5. Funds are now locked in the protocol-level escrow object and cannot be accessed except through authorized release mechanisms.

2.3 Work Delivery and Approval Request

  1. The creator performs the work and delivers the milestone deliverable (files, code, designs, etc.).
  2. The creator submits evidence of delivery (description, links, hashes) via the StudioLedger dashboard.
  3. Milestone status changes to submitted.
  4. A notification is sent to the marketmaker requesting approval.

2.4 Marketmaker Review and Approval

The marketmaker has two options:

Option A: Approve

  • Marketmaker reviews the deliverable and clicks "Approve" on the dashboard.
  • StudioLedger initiates the EscrowFinish transaction.
  • The platform provides the fulfillment (preimage) to the XRPL protocol.
  • Funds are released to the creator's address, minus the 0.98% platform fee.
  • Milestone status changes to released.
  • An MCC (Minted Craft Credential) is automatically minted for the creator as proof of completed work.

Option B: Request Revision

  • Marketmaker provides revision feedback and clicks "Request Revision".
  • Milestone status changes back to submitted (remains funded — no new escrow).
  • Creator has the opportunity to refine and resubmit.
  • Up to 2 revision rounds are permitted per milestone (unless the contract specifies otherwise).
  • After 2 revision requests, the marketmaker must either approve or escalate to dispute.

2.5 Auto-Approval Safety Net

If the marketmaker does not respond to an approval request within 7 calendar days, the escrow automatically releases:

  • StudioLedger triggers the EscrowFinish transaction.
  • Funds are released to the creator, minus the 0.98% platform fee.
  • An MCC is minted.
  • Milestone status changes to released.

This mechanic ensures creators are not left in indefinite limbo if a marketmaker becomes unresponsive.

3. Escrow Funding

3.1 Who Funds?

The marketmaker (buyer/client) funds the escrow. The marketmaker must have sufficient RLUSD in their XRPL account at the time of EscrowCreate.

3.2 Currency: RLUSD Only

Escrow-protected contracts (services with time-dependent deliverables) accept RLUSD only. This requirement eliminates volatility risk:

  • RLUSD is a stablecoin with a 1:1 peg to the US dollar.
  • At the time the contract is signed, the marketmaker knows the exact cost in USD equivalent.
  • By release time, the creator receives the agreed-upon amount regardless of market fluctuations.

XRP Exception: Instant asset sales (templates, stock photos, presets, code snippets) do not use escrow and accept XRP. Because there is no time gap between purchase and delivery, volatility is irrelevant.

3.3 Trust Line Requirements

Both parties must have active, unfrozen RLUSD trust lines with Ripple (the RLUSD issuer):

  • The trust line permits the account to hold RLUSD.
  • The trust line has a limit (e.g., 10,000 RLUSD max holdings per account).
  • An RLUSD trust line costs 0.2 XRP to create (minimum XRPL reserve).
  • StudioLedger can assist in setting up trust lines during account creation or at contract signing.

If either party does not have an active trust line when the escrow is ready to fund, the EscrowCreate transaction will fail, and the escrow cannot be created.

3.4 Funding Timeline

  • Marketmaker initiates the funding transaction when ready (not automatically).
  • Once the transaction is submitted to the XRPL, the XRPL consensus process (typically 3–5 seconds) confirms or rejects the transaction.
  • Upon confirmation, the escrow object is immutably created on the ledger.
  • The milestone status is updated to funded in the Supabase database.

4. Escrow Release

4.1 Approval Trigger

The marketmaker approves a submitted deliverable via the StudioLedger dashboard by clicking "Approve Deliverable."

4.2 Release Mechanics

  1. StudioLedger detects the approval action in the database.
  2. The platform constructs an EscrowFinish transaction with:
    • The correct escrow object ID (created during funding)
    • The fulfillment (preimage) that satisfies the crypto-condition
    • The marketmaker's signature (or platform's authority under the contract terms)
  3. The transaction is submitted to the XRPL.
  4. XRPL validators confirm the transaction (3–5 seconds typical).
  5. Funds are released to the creator's XRPL address.

4.3 Platform Fee Deduction

At the moment of escrow release, the platform deducts 0.98% of the released amount:

  • Example: Escrow amount = 10,000 RLUSD. Platform fee = 10,000 × 0.00985 = 98.5 RLUSD.
  • Creator receives: 10,000 − 98.5 = 9,901.5 RLUSD.
  • Platform receives: 98.5 RLUSD (deposited to the platform's wallet for operational costs).

Important: This fee is deducted from the escrowed amount, not charged separately to the creator. The creator's net receipt is the agreed-upon contract amount minus the 0.98% platform fee.

4.4 MCC Minting

Immediately after funds are released, StudioLedger mints an MCC (Minted Craft Credential) for the creator:

  • Taxon: 1 (Work Credential — proof of completed job)
  • Metadata: Contract terms, deliverable IPFS hash, license conditions, completion date
  • Receiver: The creator's XRPL address
  • Cost: 0.1 RLUSD minting fee (platform bears this cost; creator receives MCC at no cost)
  • Portability: The MCC is a non-fungible token that the creator owns outright and can transfer, display on a portfolio, or sell.

4.5 Auto-Approval (7-Day Deadline)

If the marketmaker does not approve or request a revision within 7 calendar days of the creator's delivery submission:

  • StudioLedger automatically triggers the EscrowFinish transaction.
  • Funds are released to the creator (minus 0.98% fee).
  • An MCC is minted.
  • A notification is sent to the marketmaker informing them that auto-approval occurred.

Rationale: This safeguard prevents creators from being held hostage indefinitely by unresponsive marketmakers.

4.6 Revision Rounds

Each milestone permits up to 2 revision rounds by default:

  1. Creator submits deliverable → Marketmaker requests revision (Round 1)
  2. Creator resubmits → Marketmaker requests revision (Round 2)
  3. Creator resubmits → Marketmaker must approve or escalate to dispute (no further revisions without dispute resolution)

Contract Override: A contract may specify a different number of revision rounds (e.g., unlimited, or zero). The contract-specified number takes precedence over the default.

5. Escrow Cancellation

5.1 CancelAfter Mechanism

Each escrow object has a CancelAfter timestamp set to approximately 7 calendar days after the escrow is funded. After this timestamp, the escrow sender (marketmaker) may unilaterally cancel the escrow via a CancelEscrow transaction on the XRPL:

  • The marketmaker (or their authorized wallet) submits the CancelEscrow transaction.
  • XRPL validators confirm the transaction (3–5 seconds typical).
  • Funds are returned to the marketmaker's account.
  • The milestone status is updated to cancelled in the Supabase database.

Protocol Enforcement: The CancelAfter mechanism is enforced by the XRPL protocol itself, not by StudioLedger. Even if StudioLedger is offline or uncooperative, the marketmaker retains the on-chain right to cancel after CancelAfter.

5.2 Refund Process

When a marketmaker cancels an escrow after CancelAfter:

  1. The marketmaker submits a CancelEscrow transaction to the XRPL.
  2. The XRPL validates that the current time is past the CancelAfter timestamp.
  3. Funds are released back to the marketmaker's XRPL address.
  4. The escrow object is closed.
  5. StudioLedger detects the cancellation (via XRPL event listeners) and updates the milestone status to cancelled.

No platform fee is deducted from a cancelled escrow — funds are returned in full to the marketmaker.

5.3 Early Cancellation

Before CancelAfter, the escrow cannot be cancelled except through:

  • Mutual agreement (both parties consent to a cancellation, processed off-chain via contract amendment)
  • Dispute resolution (arbitration panel orders escrow cancellation)

If the marketmaker attempts to cancel before CancelAfter, the XRPL will reject the transaction.

5.4 Creator Cancellation Rights

The creator does not have a unilateral right to cancel an escrow. The creator's remedy for non-payment is to escalate to dispute resolution (Section 11).

6. Multi-Milestone Escrow

6.1 Separate Escrow Objects per Milestone

A contract with multiple milestones creates multiple independent escrow objects on the XRPL:

  • Contract with 3 milestones = 3 separate escrow objects, 3 separate funding transactions, 3 separate release/cancellation pathways.
  • Each escrow object has its own condition, fulfillment, CancelAfter, and status.
  • Releasing one milestone does not affect others.

6.2 Partial Delivery and Release

  • Milestone 1: Funded, submitted, approved, released → MCC minted.
  • Milestone 2: Funded, awaiting delivery.
  • Milestone 3: Not yet funded (marketmaker may choose not to fund if relationship deteriorates).

Each milestone operates independently. Failure or delay on one does not block others.

6.3 Contract Cancellation vs. Milestone Cancellation

  • Single milestone cancellation: Marketmaker cancels one escrow via CancelEscrow. Only that milestone is cancelled; others remain funded.
  • Full contract cancellation: All funded milestones are cancelled via separate CancelEscrow transactions.

7. Platform Fee Mechanics

7.1 Fee Structure

  • Escrow Release Fee: 0.98% of the released amount
  • Example: 1,000 RLUSD escrow → 1,000 × 0.00985 = 9.85 RLUSD fee → Creator receives 990.15 RLUSD

7.2 When Fee Is Deducted

The fee is deducted at the moment of escrow release (EscrowFinish transaction). It is not charged:

  • At contract signing
  • At escrow funding
  • If the escrow is cancelled
  • If the escrow expires without release

7.3 Fee Allocation and Use

Platform fees are collected to the StudioLedger operational wallet and used for:

  • Infrastructure costs (XRPL RPC nodes, Supabase hosting, server operations)
  • MCC minting (platform subsidizes the 0.1 RLUSD minting cost per MCC)
  • Dispute resolution operations (arbitration admin, moderation)
  • Customer support and onboarding
  • Product development and maintenance

7.4 Fee Transparency

All fees are disclosed in the contract terms and are non-negotiable. The 0.98% rate applies to all creators uniformly — there are no volume discounts or variable tiers at launch.

8. Fulfillment Key Management

8.1 Platform Holds the Fulfillment

StudioLedger holds the cryptographic preimage (fulfillment) server-side in a secure key management system:

  • The preimage is stored encrypted at rest.
  • Access to the preimage is restricted to the StudioLedger backend API.
  • The preimage is used only to construct EscrowFinish transactions.

8.2 Constructive Custody Disclosure

By accepting an escrow transaction on StudioLedger, both parties acknowledge that:

  • StudioLedger has de facto control over escrow release via its possession of the fulfillment preimage.
  • This is a form of constructive custody — the platform cannot access the funds themselves, but can decide when (or if) to release them to the creator.
  • This custody is intentional and necessary to enable the platform's role as escrow administrator and dispute arbiter.

8.3 Security Measures

StudioLedger commits to:

  • Encrypting fulfillment keys at rest using industry-standard AES-256 encryption.
  • Restricting key access to minimal-privilege backend processes (no frontend access, no logs containing keys).
  • Regular security audits of key storage and access patterns.
  • Backup and disaster recovery procedures to prevent key loss.

8.4 Risk of Key Loss

If StudioLedger loses access to a fulfillment key (e.g., due to a catastrophic data breach or infrastructure failure), the affected escrow cannot be released by the platform. However, the creator is not left hostage indefinitely — the marketmaker can cancel the escrow after the CancelAfter date and reclaim funds. This represents a loss to the creator but ensures funds are not permanently trapped.

9. Issuer Controls and Risks

9.1 RLUSD Issuer (Ripple) Controls

Ripple, as the RLUSD issuer, has protocol-level controls that can affect any RLUSD transaction or account, including escrow objects:

9.1.1 Freeze

  • What it does: An issuer can freeze a trust line, preventing all transactions involving that trust line.
  • Impact on escrow: If Ripple freezes a trust line involved in an escrow, the EscrowFinish transaction will fail, and funds cannot be released. The escrow remains locked until either the trust line is unfrozen or the CancelAfter date passes (allowing the marketmaker to cancel).
  • Risk: While RLUSD is issued by a regulated entity (Ripple, NYDFS-chartered), regulatory actions (sanctions, compliance reviews) could theoretically result in issuer-initiated freezes.

9.1.2 Clawback

  • What it does: An issuer can claw back (forcibly retrieve) tokens from an account, overriding all other protocol rules, including escrow.
  • Impact on escrow: If Ripple initiates a clawback on funds locked in an escrow (e.g., due to sanctions compliance), the clawback is executed, and the escrow is cancelled without refunding either party.
  • Risk: Extremely unlikely for RLUSD holders unless the holder is on a sanctions list or the address is associated with illegal activity.

9.1.3 Authorized Trust Lines

  • Current: RLUSD trust lines are non-authorized (accounts can hold RLUSD freely once a trust line is created).
  • Future possibility: Ripple could enable "Authorised Trust Lines" for RLUSD, requiring explicit per-account authorization before RLUSD can be held.
  • Impact on StudioLedger: If Authorized Trust Lines is enabled, all platform accounts, creator accounts, and marketmaker accounts would need pre-authorization from Ripple to transact RLUSD. This could cause onboarding delays but would not affect existing accounts.

9.2 User Acknowledgment of Issuer Risks

By accepting an escrow on StudioLedger, you acknowledge:

  • Ripple is the RLUSD issuer and has final authority over RLUSD transactions.
  • StudioLedger has no control over issuer-level actions (freeze, clawback, authorisation changes).
  • In the unlikely event that an issuer action affects your escrow, StudioLedger cannot prevent or reverse it.
  • You assume the risk of issuer controls as part of transacting with RLUSD.

9.3 Mitigation

  • StudioLedger monitors Ripple announcements and regulatory changes that might affect RLUSD.
  • Users in high-risk jurisdictions (sanctions programs, asset controls) are advised to verify their compliance status before engaging in RLUSD transactions.
  • For extremely large transactions, users may request guidance from compliance staff (at launch, ad-hoc; scaled to dedicated legal team at 1,000+ users).

10. Platform Unavailability

10.1 Escrow Persistence On-Chain

If StudioLedger becomes temporarily or permanently unavailable:

  • Escrow objects remain immutably on the XRPL.
  • They continue to operate under XRPL protocol rules.
  • CancelAfter dates continue to apply.

10.2 CancelAfter as a Safety Net

If the platform is unavailable and cannot provide the fulfillment to release an escrow:

  • The marketmaker can still cancel the escrow after the CancelAfter date using the XRPL directly (via Xaman, MetaMask, or any XRPL-compatible wallet).
  • Funds are returned to the marketmaker in full.
  • The creator loses the escrow release but is protected from permanent loss of the marketmaker's funds.

10.3 Creator Protection

To mitigate the risk that a platform outage prevents release of a legitimate escrow:

  • StudioLedger maintains redundant key backups in geographically separate data centers.
  • Disaster recovery procedures are tested quarterly.
  • In the event of a major outage, StudioLedger will work to restore service within 24–48 hours.
  • If the platform cannot recover, a legal guardian (trustee) may be appointed to manage outstanding escrows on behalf of creators.

10.4 Limitation of Liability for Unavailability

StudioLedger is not liable for:

  • Delays in escrow release due to platform outages (beyond 48 hours of restoration efforts).
  • Loss of creator income due to delayed auto-approval (if the platform is offline and cannot trigger auto-approval after 7 days).
  • Users are advised to monitor CancelAfter dates and the marketplace for dispute notices in case of extended platform unavailability.

11. Dispute Interaction

11.1 Dispute Escalation Pauses Escrow Release

If either party escalates a milestone to formal dispute:

  • The creator's approval request is paused.
  • StudioLedger does not trigger EscrowFinish, and the escrow remains locked.
  • The 7-day auto-approval timer is paused while the dispute is under review.

11.2 Dispute Resolution Process

  1. Direct negotiation (0–7 days): Parties attempt to resolve directly via messaging.
  2. Platform review (7–14 days): StudioLedger admin reviews evidence and may attempt mediation.
  3. Community arbitration (14–30 days): If unresolved, a panel of 3 MCC-holding arbitrators (qualified by skill domain) reviews the case.

11.3 Arbitration Outcomes and Escrow

The arbitration panel may order:

  • Release to creator: Escrow is released (minus platform fee) to the creator, and MCC is minted.
  • Cancellation to marketmaker: Escrow is cancelled, and funds are returned to the marketmaker.
  • Partial release: Some portion is released to creator, remainder refunded to marketmaker (handled as separate transactions).

11.4 Arbitration Fee

The losing party is charged a 5% arbitration fee (deducted from the escrow amount or paid separately, per arbitration outcome). The fee covers arbitrator compensation and evidence handling.

11.5 Finality

Arbitration decisions are final and executed on-chain. Either party may appeal to a legal court, but StudioLedger considers the arbitration outcome as binding for all on-platform purposes.

12. XRPL Protocol Risks

12.1 Network Amendments

The XRPL undergoes periodic amendments (protocol upgrades) voted on by the validator network:

  • Most amendments are backward-compatible and improve security.
  • In rare cases, an amendment could affect escrow behavior or performance (e.g., changes to trust line mechanics, fee structures, or transaction serialization).
  • User impact: Negligible for most amendments. Critical amendments are documented in XRPL release notes.

12.2 Validator Changes

The XRPL is consensus-driven by a decentralized set of validators:

  • If the majority of validators are compromised or malicious, consensus could be corrupted.
  • This is an extreme scenario and is not a known risk; the XRPL has maintained consensus integrity since 2012.
  • User impact: Extremely unlikely. If consensus is compromised, all blockchains (not just escrows) are at risk.

12.3 Network Partitions or Congestion

  • During periods of high network load, transaction confirmation times can increase from 3–5 seconds to 15–30 seconds.
  • If the network partitions (groups of validators unable to communicate), transaction settlement may be delayed until the partition heals.
  • User impact: Escrow release may be delayed but not prevented. Auto-approval timer is paused during network outages.

12.4 Ledger History Revisionism

  • The XRPL maintains a complete, immutable transaction history.
  • A ledger state cannot be "rolled back" except by protocol-level amendment (extremely rare and only with consensus).
  • User impact: Escrow objects, once created, are permanent and cannot be erased.

12.5 Cryptocurrency Volatility

  • While RLUSD is pegged to the US dollar, the peg could theoretically break if Ripple's reserves are questioned or regulatory changes occur.
  • Mitigation: RLUSD is backed by Ripple's on-balance-sheet reserves and is not algorithmic. Peg risk is low.
  • User guidance: For contracts spanning more than a few weeks, use RLUSD to avoid volatility risk.

13. Limitation of Liability

13.1 Disclaimer

StudioLedger facilitates escrow transactions on the XRPL but does not act as a financial institution, bank, or custodian. The platform is a contract transaction facilitator and settlement layer coordinator, not a counterparty to your escrow.

13.2 No Liability for XRPL Events

StudioLedger is not liable for:

  • Network outages, consensus failures, or validator attacks on the XRPL.
  • Amendments or changes to XRPL protocol that affect escrow behavior.
  • Delays in transaction confirmation due to network congestion.
  • Ledger state changes or transaction reversals ordered by XRPL validators (extremely unlikely).

13.3 No Liability for Issuer Actions

StudioLedger is not liable for:

  • Freeze, clawback, or other controls exercised by Ripple (the RLUSD issuer).
  • Changes to RLUSD issuance, pegging, or trust line authorization policies.
  • Regulatory actions taken against Ripple or RLUSD.

13.4 No Liability for User Actions

StudioLedger is not liable for:

  • Loss or compromise of private keys (seed phrases, secret keys).
  • Accidental or intentional fund transfers to wrong addresses.
  • Transactions initiated by unauthorized users with access to a user's account.
  • Incorrect contract terms entered by either party.

13.5 Limited Liability for Platform Actions

StudioLedger's total liability for platform-caused damages (bugs, outages, data loss) is limited to the amount of the disputed escrow, capped at AUD $10,000 per incident. This limitation applies to all claims except gross negligence or willful misconduct.

13.6 No Consequential Damages

StudioLedger is not liable for consequential, indirect, or punitive damages, including:

  • Lost profit or business opportunity.
  • Lost revenue or customer relationships.
  • Reputational damage.
  • Emotional distress.

Even if StudioLedger has been advised of the possibility of such damages.

13.7 Indemnification

You agree to indemnify, defend, and hold harmless StudioLedger from any claims, damages, or liabilities arising from:

  • Your use of the platform in violation of these terms.
  • Your violation of applicable law.
  • Your disputes with other users.
  • Your negligent or intentional conduct.

14. Governing Law and Jurisdiction

Governing Law: These Escrow Terms are governed by the laws of Australia (jurisdiction: New South Wales or Victoria, to be determined).

Dispute Escalation:

  1. Good faith negotiation (as described in Section 11.2 — Direct Negotiation)
  2. Community arbitration (Section 11)
  3. Legal proceedings (exclusive jurisdiction: courts of New South Wales, Australia)

Waiver of Class Actions: You waive any right to pursue claims against StudioLedger on a class-action, representative, or collective basis. All claims must be brought individually.

15. Amendments and Updates

15.1 Changes to These Terms

StudioLedger may amend these Escrow Terms at any time by posting the updated version on the platform and via email notification to all registered users.

15.2 Continued Use = Acceptance

If you continue to use the platform 30 days after an amendment is posted, you are deemed to have accepted the amended terms. If you do not accept, you must discontinue use.

15.3 Material Changes

For material changes (e.g., changes to the 0.98% fee, escrow mechanics, or liability limitations), StudioLedger will provide at least 60 days' notice and will obtain explicit written consent before the change takes effect.

Appendix A: Fee Calculation Examples

Example 1: Single Milestone, Simple Release

  • Contract amount: 5,000 RLUSD
  • Escrow funded: 5,000 RLUSD
  • Creator delivers, marketmaker approves
  • Platform fee (0.98%): 5,000 × 0.00985 = 49.25 RLUSD
  • Creator receives: 5,000 − 49.25 = 4,950.75 RLUSD
  • Platform receives: 49.25 RLUSD

Example 2: Multi-Milestone Contract, Partial Release

  • Milestone 1: 2,000 RLUSD (approved, released)
    • Fee: 2,000 × 0.00985 = 19.7 RLUSD
    • Creator receives: 1,980.3 RLUSD
  • Milestone 2: 3,000 RLUSD (in progress, not yet released)
  • Milestone 3: 1,500 RLUSD (not funded)
  • Total creator income so far: 1,980.3 RLUSD (from Milestone 1)
  • Total platform revenue so far: 19.7 RLUSD

Example 3: Cancelled Escrow

  • Contract amount: 10,000 RLUSD
  • Escrow funded, creator does not deliver, marketmaker cancels after CancelAfter date
  • Platform fee deducted: 0 RLUSD (no fee on cancellation)
  • Marketmaker refunded: 10,000 RLUSD (in full)
  • Creator receives: 0 RLUSD
  • Platform receives: 0 RLUSD (from this escrow)

Appendix B: Glossary of Terms

Term Definition
Condition Cryptographic hash that locks an escrow. Corresponds to a fulfillment preimage.
Constructive Custody A third party holds a key (fulfillment) that enables control over funds, even if the funds are not held directly.
Creator The service provider delivering work; receives escrow funds upon approval.
Crypto-Condition RFC-compliant cryptographic commitment mechanism (five-bells-condition).
CancelAfter XRPL timestamp after which the sender (marketmaker) can unilaterally cancel an escrow.
EscrowCreate XRPL transaction that creates (funds) an escrow object.
EscrowFinish XRPL transaction that releases an escrow (requires fulfillment).
EscrowCancel XRPL transaction that cancels an escrow (requires CancelAfter to have passed).
Escrow Object Protocol-level transaction object on XRPL that locks funds.
Fulfillment Cryptographic preimage that satisfies a condition and enables escrow release.
Marketmaker The buyer/client who funds the escrow.
MCC Minted Craft Credential; XLS-20 NFT minted upon escrow release as proof of work.
Milestone A discrete deliverable within a contract, protected by its own escrow object.
RLUSD Stablecoin issued by Ripple, pegged to USD, used for escrow contracts.
Trust Line Bilateral accounting relationship between an account and the RLUSD issuer (Ripple).
XRP Native cryptocurrency of the XRP Ledger; used for instant asset sales (no escrow).
XRPL The XRP Ledger — the blockchain protocol underlying StudioLedger.

Document Control

Attribute Value
Document Name StudioLedger Escrow Terms
Version 1.0
Last Updated March 2026
Status Draft (Awaiting Legal Review)
Jurisdiction Australia (New South Wales / Victoria)
Maintained By StudioLedger Pty Ltd (Remy Ruozzi)
Effective Date [To be set upon legal approval]

Legal Notice

This document is provided for informational purposes only and has not been reviewed by a qualified legal professional in any jurisdiction. Before relying on these terms or transacting on the StudioLedger platform, obtain independent legal advice from a lawyer qualified in your jurisdiction. StudioLedger assumes no liability for errors, omissions, or misinterpretations of these terms.

By using StudioLedger, you accept all risks associated with blockchain technology, cryptocurrency, XRPL protocol mechanics, RLUSD issuance, and the constructive custody model described herein.

StudioLedger Pty Ltd | ACN 696 549 809 | ABN 31 696 549 809

End of Document