> 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/user-guide/lock-funding-accept-proposal.md). # Locking Funds & Accepting a Proposal Every agreement on NovaCont requires two separate confirmations before work begins. One from each party. This two-step activation is intentional: it ensures that both sides have consciously committed to the same terms before any obligations take effect.
### If You Are the Client You are the client in this flow if you have received a proposal link from a provider and are being invited to fund the agreement. {% stepper %} {% step %} #### Open the Proposal Link Click the link shared by your provider. You will be taken directly to the proposal review page. All terms (title, description, agreed price, deadlines, and the provider's wallet address) are encoded in the link and displayed for your review. {% endstep %} {% step %} #### Connect Your Wallet If your wallet is not already connected, you will be prompted to do so. Your wallet address will be registered as the **client address** for this contract. This means only your wallet will be able to approve delivered work, open a dispute, or cancel the agreement. Use the wallet you intend to manage this agreement with. {% endstep %} {% step %} #### Review the Terms Carefully This is the most important step. Read every detail before proceeding: * **Contract Title and Description**: Does this match exactly what you agreed upon with the provider off-platform? If anything is vague, incorrect, or missing, do not proceed. Contact the provider and ask them to generate a new link with corrected terms. * **Delivery Deadline**:The number of days the provider will have to complete the work. This countdown begins the moment the provider accepts. Not when you fund the contract. * **Provider Address**: Confirm this is the correct wallet of the person you are contracting with. * **Agreed Base Price and ETH Equivalent**: Verify the USD amount matches what you discussed. The ETH figure is calculated live via oracle pricing and may fluctuate slightly {% endstep %} {% step %} #### Understand Your Deposit NovaCont will display the exact amount of ETH you are required to send before you confirm. *Standard Deposit (agreements $200 and above)* You deposit exactly the agreed base price in ETH. Upon successful completion, the agreed amount minus the 3% platform fee is released to the provider. *Extra Deposit (agreements below $200)* For lower-value agreements, NovaCont requires a **1.25x deposit.** You lock 25% more than the agreed base price. This extra amount acts as a trust buffer and is returned to you in full upon successful completion. It is never paid to the provider. > This mechanism raises the cost of bad-faith behavior in low-value contracts, where the incentive to act dishonestly is otherwise disproportionate to the stakes involved. > {% endstep %} {% step %} #### Lock the Funds Once you are ready, click **Accept Proposal & Lock Funds** and confirm the transaction in your wallet. What happens the moment you confirm**:** * Your ETH is locked inside the smart contract. Neither you, the provider, nor NovaCont can access it freely * The contract enters **Pending Approval** state * Your dashboard will show the agreement as active with a "The provider is expected to accept this work" notice * The accept deadline countdown begins. The provider must now respond within the window they defined > **Important:** Locking funds does not mean work has started. The provider must still review and formally accept the contract before the delivery period begins. You can cancel and reclaim your funds at any point during this waiting period if the provider has not yet responded. > {% endstep %} > {% endstepper %} ### If You Are the Provider You are the provider in this flow if you generated a proposal link and someone has used it to fund a contract. At this stage, the funds are locked on-chain and the agreement is waiting for your response. {% stepper %} {% step %} #### Review the Funded Contract You will see the contract appear in your dashboard with a **Pending Approval** badge. Open it to review the full details. Including the client's wallet address and the locked amount. > **This is a deliberate verification step.** Because NovaCont proposal links do not restrict which wallet can fund them, any address could technically act as the client. Before accepting, confirm through your existing communication channel that the wallet address shown as the client belongs to the person you actually intend to work with. > {% endstep %} {% step %} #### Accept or Reject After verifying the client's identity, you have two options: *Accept*: Click **Accept** to confirm your commitment. This action is recorded on-chain. The contract transitions from **Pending Approval** to **In Progress** and your delivery countdown begins immediately from this moment. *Reject*: If the client's wallet address is unrecognized, the terms appear tampered with, or you simply no longer wish to proceed, click **Reject**. The client's funds are immediately and fully refunded. The contract is closed and no further action is required from either party. {% endstep %} {% step %} #### Work Begins Once you accept, the delivery deadline is now active. You are expected to complete and submit the agreed deliverables within the window you originally defined. The next steps are covered in the **Submitting Deliverables** section. {% endstep %} {% endstepper %} ### Understanding Fund Locking When you lock funds on NovaCont, your ETH does not go to the provider, to NovaCont, or to any third party. It is sent directly to the NovaCont smart contract an autonomous piece of code deployed on the blockchain that operates independently of any human control. No individual, company, or entity has the ability to unilaterally move, freeze, or redirect your funds. The smart contract holds them according to strictly defined rules, and releases them only when one of the valid conditions below is met. ### Where Do My Funds Actually Go? Your deposit is transferred to the NovaCont smart contract address at the moment you confirm the transaction. From that point forward, the funds exist entirely on-chain. They are publicly verifiable anyone can confirm their presence and movement using a blockchain explorer but they cannot be touched by anyone outside of the contract's own logic. This is what non-custodial means. NovaCont never takes custody of your funds. The platform and any marketplace integrating the NovaCont Protocol facilitates the agreement, but it never holds your money. ### When Are Funds Released? Your locked funds will be released under one of the following conditions: **Successful Completion** The provider delivers the work and you approve it. The agreed base price minus the 3% platform fee is released to the provider. If an extra deposit was required, the 25% surplus is returned to you simultaneously. **Cancellation Before Acceptance** If the provider has not yet accepted the contract, you may cancel at any time. Your full deposit is returned immediately with no deductions. **Cancellation After Acceptance** If the provider has accepted but the delivery deadline has not yet passed, you may still cancel. However, if more than half of the delivery period has elapsed, the provider is entitled to 50% of the agreed base price as compensation for time already committed. The remainder is returned to you. **Provider Rejection** If the provider rejects your proposal, your full deposit is returned immediately and automatically. **Provider Fails to Accept** If the provider does not respond within the accept deadline, the contract expires and your full deposit is returned. **Dispute Resolution** If a dispute is opened and resolved, funds are distributed according to the resolution outcome. The exact split depends on the mediator's decision. **7-Day Timeout After Delivery** If the provider submits their deliverables and you do not respond within 7 days, the smart contract automatically releases the full payment to the provider. This prevents funds from being held hostage by an unresponsive client. ### Can My Funds Ever Get Stuck? No. Every possible path through the contract lifecycle has a defined exit. The timeout mechanisms exist precisely to ensure that funds never remain locked indefinitely, regardless of whether one party becomes unresponsive, disappears, or acts in bad faith. The smart contract does not rely on NovaCont to intervene. It enforces these rules automatically.