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Trust & Safety ResourceMilestone Payment Protection & Escrow Guidelines

Crucial guidelines for freelancers and clients on managing fixed-price contracts safely and resolving disputes.

CRITICAL WARNING FOR CONTRACTORS: BotDigit payment protection ONLY covers funds actively deposited into escrow for a specific milestone. Never start or continue working on a milestone that is "promised," "unfunded," or listed as a future step. If you deliver work on an unfunded milestone, BotDigit cannot recover or dispute those funds.

01. The Golden Escrow Rule

Fixed-price contracts on BotDigit are structured around secure escrow milestones. When a milestone is funded, the client deposits the required funds, and BotDigit holds them in escrow. When work is completed and approved, the client releases those funds to the freelancer.

Why you must never work on unfunded milestones:

  • No Payment Guarantee: If the client refuses to fund a milestone after you complete the work, there are no funds in escrow for our arbitration team to release to you.
  • Off-Platform Scams: Disreputable clients may request "trial tasks" or "subsequent milestone drafts" without depositing funds first. This violates our Terms of Service.
  • Limitation of Dispute Resolution: BotDigit Dispute Services can only arbitrate and divide funds that are actively locked inside the escrow contract.

02. Fixed-Price Milestone Workflow

To ensure maximum protection, contractors and clients must strictly adhere to the following sequence:

1

Client Funds the Milestone

The client defines the exact scope, deadline, and payment amount, then deposits the funds into escrow.

2

Contractor Performs the Work

The freelancer executes tasks strictly aligned with the active, funded milestone scope.

3

Deliver & Submit

Freelancer submits the deliverables using the platform's "Submit Milestone" button. This officially logs the delivery timestamp.

4

Review & Release

The client has 14 days to review. Once approved, the client releases the funds and deposits the budget for the next milestone before work resumes.

03. Scope Creep & Unfunded Requests

Scope creep occurs when a client continuously introduces new requirements, extra revisions, server migrations, or audits that were not part of the initial contract scope, without increasing the budget or funding new milestones.

If a client requests work that exceeds the funded milestone:

  • Request a New Milestone: Politely inform the client: "I would be glad to help with these new requirements. Please create and fund a new milestone for this scope so I can begin."
  • Pause Unfunded Work: If the client refuses to fund the milestone or demands that you do the work first, pause your work immediately. Continuing to work in good faith without escrow protection puts you at risk of unpaid labor.
  • Document Agreements: Ensure all scope agreements, modifications, and milestone goals are explicitly logged in the BotDigit contract message logs. Off-platform communications are harder to verify during disputes.

04. Disputes & Arbitration

If a dispute arises (e.g., a client refuses to release a milestone even though you completed the deliverables, or a freelancer submits non-functional code), either party can file a formal Dispute in the contract panel.

How BotDigit handles disputes:

  • Mediation Stage: Our team prompts both parties to reach a mutual agreement or split the escrow funds. Most disputes are resolved amicably in this phase.
  • Arbitration Stage: If mediation fails, the case is forwarded to our Trust & Safety specialists for a formal investigation. We review the contract terms, active milestone specifications, deliverable code files, and message records.
  • Binding Outcome: The final decision dictates the percentage split of the escrowed funds and is legally binding and non-negotiable.

05. Preparing Your Dispute Evidence Package

When submitting a Trust & Safety review or initiating a dispute, you must provide clear, chronological documentation. Ensure your evidence package includes:

Deliverables Evidence

Screenshots, video walkthroughs, and repository references demonstrating the completed milestones.

Scope creep logs

Message screenshots showing the client introducing requirements (like migrations or audits) outside the active milestone.

Funding requests

Proof of your requests asking the client to fund milestones before starting work.

Exit offers

Evidence of communications where you offered the client a clean exit or contract termination.

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