What is Monero escrow trading?

Escrow trading uses a trusted third-party mechanism to protect both buyer and seller. In Monero P2P trading, Haveno (an open-source DEX) provides 2-of-3 multisig escrow: the buyer's XMR, the seller's XMR security deposit, and the trade amount are locked in a multisig wallet that requires 2 of 3 keys (maker, taker, arbitrator) to release. Neither party can steal the funds unilaterally. If there's a dispute, an arbitrator reviews evidence and releases funds to the honest party.

How does Haveno 2-of-3 multisig work?

When a trade is initiated: (1) Both parties deposit XMR into a 2-of-3 multisig wallet (maker deposit + taker deposit + trade amount). (2) The three key holders are: maker, taker, and arbitrator. (3) Any 2 keys can release the funds. (4) If the trade goes smoothly, maker and taker sign together to release. (5) If there's a dispute, the arbitrator reviews evidence and co-signs with the honest party to release funds. The arbitrator alone cannot steal — they only hold 1 of 3 keys. This is trustless escrow: no single party can unilaterally control the funds.

What are security deposits in Haveno?

Security deposits are XMR locked by both buyer and seller to prevent griefing. RetosSwap: 15% of trade amount from each side. DawnSwap: 5% from each side. If a party fails to complete the trade (doesn't send payment, doesn't confirm receipt), the arbitrator can award the dishonest party's deposit to the honest party as compensation. This creates a financial incentive to complete trades honestly. Deposits are returned to both parties when the trade completes successfully.

Which Haveno instances offer escrow?

Two main instances in 2026: (1) RetosSwap — the largest, ~$2M/month volume, 15% security deposits, 0.6% total fees, arbitrator RoundTheRoses (24-48h response). (2) DawnSwap — newer, lower deposits (5%), higher fees (~2%), 24/7 arbitration (minutes to hours response), growing liquidity. Both support EUR Cash by Mail, face-to-face, SEPA transfer, and many other payment methods. Both are open-source forks of the Haveno protocol.

Is Monero escrow really trustless?

Mostly. The 2-of-3 multisig means no single party (including the arbitrator) can steal funds alone. However, there is a trust assumption: the arbitrator must be honest. If the arbitrator colludes with one party (arbitrator + dishonest party = 2 keys), they could steal the other party's deposit. In practice, arbitrators are selected by the Haveno community, have public reputations, and have strong incentives to remain honest (their reputation is their livelihood). This is significantly safer than trusting an anonymous P2P trader with no escrow.

Monero Escrow Trading (2026)

Haveno 2-of-3 multisig — trade XMR safely with security deposits and arbitration

TL;DR: Don't trust, verify. Haveno provides 2-of-3 multisig escrow: both parties lock deposits, 3 key holders (maker + taker + arbitrator), any 2 can release. RetosSwap: 15% deposit, 0.6% fee, ~$2M/month. DawnSwap: 5% deposit, ~2% fee, 24/7 arbitration. Neither party can steal. Disputes resolved by arbitrator within 24-48h.

How Escrow Protects You

Scenario	Without Escrow	With Haveno Escrow
Buyer doesn't pay	Seller loses XMR	Seller keeps deposit
Seller doesn't send XMR	Buyer loses cash	Arbitrator releases to buyer
Dispute over amount	No recourse	Arbitrator reviews evidence
Counterparty disappears	Funds lost	Deposit forfeited, funds returned

The 2-of-3 Multisig Flow

1. Offer created: Maker creates an offer on RetosSwap or DawnSwap. Specifies: amount, price, payment method, security deposit %.

2. Offer taken: Taker accepts. Both parties' deposits + trade amount lock into a 2-of-3 multisig wallet.

3. Three key holders: Maker (key 1), Taker (key 2), Arbitrator (key 3). Any 2 keys can release funds.

4. Payment sent: Fiat buyer sends payment (bank transfer, cash by mail, face-to-face). Confirms in the app.

5. Payment confirmed: Fiat seller confirms receipt. Maker + Taker co-sign → funds released to both parties.

6. Dispute (if needed): Either party opens a dispute. Arbitrator reviews evidence. Arbitrator co-signs with the honest party to release funds.

RetosSwap vs DawnSwap

Feature	RetosSwap	DawnSwap
Volume	~$2M/month	Growing
Security deposit	15%	5%
Maker fee	0.5%	~1%
Taker fee	0.1%	~1%
Arbitration speed	24-48 hours	Minutes to hours
Arbitrator	RoundTheRoses	Anonymous team (24/7)
Best for	High-volume, established	Low deposits, fast disputes

When to Use Escrow

Always use escrow when: Trading with someone new. Large amounts. You have any doubt about the counterparty.

Escrow optional when: Trading with a long-standing partner. Small amounts (the deposit cost may exceed the trade). The counterparty has extensive verifiable history (e.g. 683 trades, 100% feedback).

Important: Even experienced traders offer escrow. It's not a sign of distrust — it's professionalism. arnoldnakamura always offers Haveno escrow on request.

Don't Trust, Verify

The entire point of P2P trading is eliminating intermediaries. Escrow adds one back (the arbitrator) — but only as a safety net, not a gatekeeper. The arbitrator can't see your trade, can't block your trade, and can't access your funds alone.

For first trades: use escrow. For recurring partners: your choice. For large amounts: always escrow.

arnoldnakamura — 683 trades, 100% feedback. Escrow always available. Telegram