Buyer Protection

WeTheNorth Escrow System Explained

Understanding WeTheNorth's centralized escrow system: how it protects buyers, finalization process, dispute resolution, and critical warnings about exit scam risks.

💰 What is Escrow?

Escrow is a buyer protection mechanism that holds your payment until you confirm receipt of the product. It prevents vendors from taking your money without delivering.

How It Works (Simple Version):

  1. You Place Order: Deposit Monero (XMR) to marketplace wallet, select product, submit order
  2. Funds Held in Escrow: Your XMR is locked in escrow (vendor can't access it yet, you can't withdraw it)
  3. Vendor Ships Product: Vendor marks order as "Shipped" and provides tracking (if available)
  4. You Receive Package: Wait for delivery, verify product quality and quantity
  5. You Finalize Order: If satisfied, click "Finalize" - escrow releases funds to vendor
  6. Transaction Complete: Vendor receives payment, you leave review (optional but recommended)
✓
Key Protection: If package never arrives or product is wrong, you can open dispute BEFORE finalizing. Marketplace admin mediates and can refund your money.

🔍 Escrow vs Direct Payment (Finalize Early)

Feature Escrow (Recommended) Finalize Early (FE)
Buyer Protection Full Protection Zero Protection
Refund if No Delivery Yes (via dispute) No (vendor has funds)
When Vendor Gets Paid After you finalize Immediately
Scam Risk Low Very High
When to Use Always (default) Never (WeTheNorth prohibits FE)
⚠ī¸
WeTheNorth Policy: Finalize Early (FE) is PROHIBITED on WeTheNorth Market. All orders must use escrow. Any vendor requesting FE is scamming - report them immediately.

📋 Escrow Process: Step-by-Step

Step 1: Deposit Monero (XMR)

Action: Navigate to Wallet → Deposit XMR
Details:

  • Copy your unique deposit address (changes for each deposit for privacy)
  • Send XMR from your personal wallet (Cake Wallet, Feather, Official Monero GUI)
  • Wait for 10 confirmations (~20 minutes)
  • Balance appears in marketplace wallet
💡
Best Practice: Only deposit exact amount needed for immediate order + small buffer for fees. Never store large amounts in marketplace wallet (exit scam risk).

Step 2: Place Order

Action: Find product, select quantity, submit order
Details:

  • Search for product or browse vendor listings
  • Read product description, check vendor rating (4.5+ stars recommended)
  • Select quantity, shipping option (standard/express)
  • Encrypt shipping address with vendor's PGP key (REQUIRED)
  • Add order notes if needed (encrypted with PGP)
  • Review total price (product + shipping + fees)
  • Click "Place Order" - funds deducted from wallet balance and held in escrow

Step 3: Vendor Ships Order

Vendor Action: Vendor receives order notification, prepares package
Timeline:

  • Vendor has 24-48 hours to accept order (or auto-canceled)
  • After accepting, vendor ships within 1-3 business days (varies by vendor)
  • Vendor marks order as "Shipped" and may provide tracking number (domestic orders often don't have tracking)
  • You receive notification: "Order Shipped"

Step 4: Wait for Delivery

Action: Monitor shipping status
Timeline:

  • Domestic Canada: 2-7 business days (standard mail)
  • Domestic Express: 1-3 business days (if vendor offers)
  • International: 7-21+ days (higher customs risk)
  • Check mailbox daily (don't ask mail carrier or sign for packages)
đŸ“Ļ
Package Interception: If package requires signature, DO NOT SIGN. Legitimate vendors never send packages requiring signature (controlled delivery risk). Let package return to sender.

Step 5: Receive & Verify Product

Action: Inspect package and contents
Verification Checklist:

  • ✓ Package arrived undamaged
  • ✓ Correct product (matches order description)
  • ✓ Correct quantity (weigh if necessary)
  • ✓ Product quality acceptable (test if possible/safe)

Wait 24-48 Hours Before Finalizing: "Cool-off period" ensures package wasn't controlled delivery and product quality is verified.

Step 6: Finalize Order (Release Escrow)

Action: Confirm receipt and release funds to vendor
How to Finalize:

  1. Navigate to Orders → Active Orders
  2. Find order, click "Finalize Order" or "Release Escrow"
  3. Confirm finalization (this is irreversible)
  4. Escrow releases funds to vendor's wallet
  5. Order status changes to "Completed"
  6. (Optional) Leave review and rating for vendor
⭐
Leave Reviews: Honest reviews help community identify trusted vendors and avoid scammers. Include details: shipping speed, product quality, stealth, communication.

⏰ Auto-Finalization Timer

What is it? If you don't finalize or open dispute within specific timeframe, order auto-finalizes and vendor receives payment automatically.

WeTheNorth Auto-Finalize Period:

  • Standard: 14 days after vendor marks "Shipped"
  • Express/Rush: 7 days after marked "Shipped" (for faster shipping options)
  • International: 21 days (longer to account for customs delays)

Why Auto-Finalization Exists:

  • Prevents buyers from holding funds indefinitely
  • Ensures vendors get paid for legitimate deliveries
  • Reduces admin workload from abandoned orders
⚠ī¸
Important: If package hasn't arrived by day 10-12 (for 14-day timer), open dispute IMMEDIATELY. Once auto-finalization occurs, you cannot dispute or get refund.

⚖ī¸ Dispute Resolution

When to Open Dispute: If package doesn't arrive, product is wrong, quantity is short, or quality is unacceptable.

Dispute Process:

  1. Open Dispute (Before Auto-Finalization):
    • Navigate to Orders → Find order → "Open Dispute"
    • Select dispute reason:
      • "Package Not Received" (most common)
      • "Wrong Product Sent"
      • "Incorrect Quantity"
      • "Product Quality Issue"
    • Provide detailed description with evidence (photos if applicable)
    • Submit dispute
  2. Vendor Responds:
    • Vendor receives dispute notification
    • Vendor has 48-72 hours to respond with explanation
    • Common vendor responses: "Package delayed, wait longer", "Reship offered", "Refund agreed"
  3. Marketplace Admin Mediates:
    • If you and vendor can't agree, admin reviews evidence
    • Admin considers: vendor reputation, buyer history, shipping times, evidence
    • Admin decides outcome:
      • Full Refund: 100% escrow returned to buyer wallet
      • Partial Refund: 50% returned (for quality issues, partial delivery)
      • Reship: Vendor must send replacement
      • Finalize for Vendor: Admin determines vendor fulfilled order
  4. Decision Final: Admin's decision is binding and irreversible

Tips for Winning Disputes:

  • Document Everything: Save all messages with vendor (PGP-encrypted communications)
  • Be Patient First: Wait reasonable time before disputing (mail delays happen)
  • Provide Evidence: Photos of wrong product, packaging, weight discrepancies
  • Be Honest: Fraudulent disputes damage your account reputation
  • Communicate with Vendor: Try resolving directly before opening dispute (vendor may offer reship/refund voluntarily)
đŸ’Ŧ
Dispute Statistics: Legitimate vendors have <5% dispute rate. If vendor has 10%+ dispute rate, avoid them (likely scammer or unreliable).

🔐 Centralized Escrow vs Multisig Escrow

WeTheNorth uses centralized escrow. Understanding the difference from multisig is important for risk assessment.

Feature Centralized Escrow (WeTheNorth) Multisig Escrow (Rare)
Who Controls Funds Marketplace Admins Buyer + Vendor + Admin (2-of-3)
Exit Scam Risk High (admins can steal) Zero (admins can't access funds alone)
Dispute Resolution Fast (admin decides) Requires 2 signatures
Ease of Use Simple (like PayPal) Complex (requires wallet setup)
Implementation Easy (most markets) Difficult (few markets)
⚠ī¸
Exit Scam Reality: With centralized escrow, marketplace admins control all escrowed funds. If they decide to exit scam, they can steal all funds in escrow. This has happened to many markets (AlphaBay, Dream Market, etc.). Multisig escrow prevents this, but WeTheNorth doesn't use it.

Risk Mitigation for Centralized Escrow:

  • Never Store Funds: Only deposit for immediate orders, withdraw unused balance immediately
  • Finalize Quickly: Once package arrives and verified, finalize ASAP (removes funds from escrow pool)
  • Small Orders: Make multiple small orders instead of one large order (limits loss if market exits)
  • Monitor Market Health: Watch for signs of exit scam:
    • Withdrawal delays or disabled withdrawals
    • Admin silence on Dread forum
    • Sudden vendor exodus
    • Unusual fee increases

đŸ’ĩ Escrow Fees & Costs

WeTheNorth charges fees to operate the marketplace and escrow system:

Fee Structure:

  • Vendor Fee: 3-5% of order value (paid by vendor, factored into product price)
  • Buyer Fee: Usually $0 (buyers don't pay escrow fees directly)
  • Deposit Fee: Free (no fee for depositing XMR)
  • Withdrawal Fee: Network fee only (~0.0001-0.001 XMR / $0.01-0.10) to cover Monero transaction costs
💡
Compare to Other Markets: WeTheNorth's fees are competitive. Some markets charge 5-10% vendor fees. Empire Market charged 4% vendor + 2% buyer fees before exit scamming.

✅ Escrow Best Practices

✓ DO:

  • Use escrow for EVERY order (never Finalize Early)
  • Deposit only exact amount needed for immediate order
  • Withdraw unused balance immediately after order
  • Wait reasonable time for delivery before disputing
  • Communicate with vendor before opening dispute
  • Finalize within 24-48 hours of verifying product
  • Leave honest reviews after finalization

✗ DON'T:

  • Never Finalize Early (even if vendor asks nicely)
  • Never store large amounts in marketplace wallet
  • Never leave funds in escrow after receiving product
  • Never finalize before package arrives
  • Never open fraudulent disputes (damages reputation)
  • Never ignore auto-finalization timer
  • Never trust vendors with <50 reviews or <4.5 stars

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