Escrow Payment System

Escrow Payment Policy

This Escrow Payment System governs how funds are securely held, released, and refunded on the Konetos platform to protect both Clients and Artisans.

Effective Date: 01/05/2026

Part 1-2: Purpose & How Escrow Works

1 Purpose

The escrow system ensures:

Clients only pay for satisfactory work
Artisans are guaranteed payment for completed work
Konetos maintains trust, transparency, and accountability

2 How Escrow Works (Step-by-Step)

The escrow process follows a structured flow to protect all parties involved:

Project Agreement

Client and Artisan agree on:

Scope of work
Total cost
Timeline
Milestones (if applicable)

Payment into Escrow

Client deposits full project amount (or first milestone) into Konetos escrow. Funds are securely held and not accessible to the Artisan. Project officially begins only after escrow funding.

Payment Clearance Period (Anti-Fraud Protection)

Mandatory 24-Hour Clearance

All payments are subject to a mandatory 24-hour clearance period to verify funds and prevent fake payment alerts or reversals.

Funds remain pending and cannot be used or withdrawn during this period
Artisans are strictly prohibited from commencing work until payment status changes to "Cleared"

Work Commencement

Artisan begins work only after payment is marked as cleared. Konetos may monitor progress including on-site visits where applicable.

Milestone Completion (Optional)

For large projects, payments are divided into milestones. Each milestone must be completed and approved before release.

Client Approval

Client reviews the completed work and approves or raises a dispute within the allowed timeframe.

Fund Release

Upon approval, funds are released to the Artisan. Konetos deducts commission before payout.

Part 3-5: Release, Disputes & Partial Payments

3 Automatic Release Protection

If the Client does not respond within 3–5 days after delivery, funds may be automatically released to the Artisan. This prevents unnecessary delays and protects artisans from non-responsive clients.

Auto-release after 3–5 days of client non-response

4 Dispute Handling in Escrow

If a dispute is raised:

Funds remain locked in escrow
Konetos reviews evidence (messages, photos, agreements, site reports)
A fair decision is made to release funds to Artisan or refund Client (full or partial)

5 Partial Releases

Funds may be partially released:

Based on completed milestones
Based on percentage of work completed

This supports long-term or large-scale projects.

Part 6-8: Refunds, Cancellation & Protection

6 Refunds via Escrow

Refunds are only processed from escrow funds
If funds have already been released, refunds depend on dispute resolution outcomes

7 Cancellation Rules

Before Work Starts

Full refund to Client

After Work Starts

Partial refund based on work completed

After Completion

No refund unless dispute is valid

8 Escrow Protection Rules

No Work Without Escrow

Work must not begin without escrow funding and clearance.

No Off-Platform Payments

Payments outside escrow violate platform policy.

Dual Protection

Escrow ensures both parties are protected under Konetos policies.

Policy Enforcement

Violations of escrow rules may result in account penalties.

Part 9-14: Fraud Prevention, Fees & Legal

9 Fraud Prevention

Konetos may:

Hold or delay transactions flagged as suspicious
Enforce the 24-hour clearance rule strictly to prevent fake alerts
Request identity or job verification
Suspend accounts involved in fraudulent activity

10 Tool Financing Integration

For artisans under the tool financing program:

Automatic Deduction

Repayments may be automatically deducted from escrow releases. Clear breakdowns will be shown before payout.

11 Fees and Charges

Commission is deducted at fund release
Payment processing fees may apply
All charges are disclosed before payment

12 Security and Trust

All escrow funds are securely managed
Konetos ensures proper tracking and transaction transparency

13 Limitations

Konetos acts as a neutral intermediary and does not guarantee:

Absolute project outcomes
Absence of disputes

However, Konetos will act in good faith to resolve all issues fairly.