> For the complete documentation index, see [llms.txt](https://novacont.gitbook.io/nova-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://novacont.gitbook.io/nova-docs/novacont-lite/contract-states-and-lifecycle.md).

# Contract States & Lifecycle

A NovaCont Lite agreement moves through four clear stages, from signature to payment. Each stage leaves an irreversible on-chain record. No one can step in and alter the process.

<figure><img src="/files/gJr0iuVOdq2lEEaQ0Ip8" alt=""><figcaption></figcaption></figure>

### The Four States

**Create the Contract:** One of the parties initiates the agreement. The work description and amount (and, if you're the client, the counterparty's wallet address) are entered. No funds move at this point. The contract simply sits in the "Created" state, waiting for the other party's approval.

**Lock the Funds:** When the client approves the agreement and sends the funds, the contract moves to the "Accepted" state and the TON is locked inside the smart contract itself. If the amount is under 10 TON, an extra security deposit 25% on top of the agreed amount is required. This protects both parties by increasing the stakes in low-value agreements. From this point on, neither the provider, the client, nor the NovaCont team can access the funds unilaterally only the contract's own logic can release them.

**Delivery & Review:** When the provider completes the work, they submit proof of delivery (a file link, repository, delivery note, etc.) to the system, and the contract moves to the "Delivered" state. From here, the client has 7 days to review the work. During this window, the client can approve it or raise a dispute (Disputed).

**Automatic Release:** If the client approves, or if the review period expires without a dispute, the contract automatically moves to "Completed" and the funds are distributed instantly: the provider receives their payment, the protocol fee is deducted, and any extra deposit is refunded to the client. No manual approval or third-party intervention is required. This step is executed entirely by the contract's own code.

#### The Dispute Path

At any point during the process (in the "Accepted" or "Delivered" states), either party can raise a dispute. When this happens, the contract moves to the "Disputed" state and the normal automated flow stops. Resolution now depends on admin review.