Escrow allows you to place collection offers on NFTs without using your liquidity until your offer is sold into. With escrow, users have greater capital efficiency to place up to 100 offers from one shared pool of funds.In this article, we'll delve into the details of what escrow on Solana is and how it creates value to Magic Eden users.
What is escrow?
Escrow on Magic Eden empowers users to make collection offers or single item offers using funds from their escrow wallet. Users can still allocate specific funds for each offer they place from their main wallet. However, with escrow, users can spread their liquidity across numerous offers without the need for additional funds upfront to cover them all. When your escrow wallet balance cannot cover an active collection offer, the offer becomes inactive and is no longer available on the order book. Users must deposit more funds into their escrow wallet to reactivate existing offers.
Key benefits of escrow
Greater capital efficiency: Create multiple collection offers without locking up funds in a single offer.
Expanded opportunities: Increase chances of acquiring desired NFTs by placing multiple offers simultaneously.
Self Custody: Your funds, your control. Escrow funds always remain in your sole custody, so cancel or change at any time.
Getting started with escrow
To start using escrow on Magic Eden, simply deposit funds into your escrow wallet from your main wallet in the account menu and place a collection offer or single item offer. Your escrow wallet will be automatically chosen as the default option. While purchasing, you can choose to fund your offer from escrow or main however you’d like.
Alternatively, you can access your escrow wallet using the profile menu, account sidebar, or the "Offers Made" section. In the profile menu, navigate to "Details" beside your wallet address to check balances and more. For the account sidebar, connect your Solana wallet and hover over the account balance to see escrow details. Use the "Offers Made" section to manage the bidding wallet directly by withdrawing or depositing funds.
How to manage your escrow account:
Log in to your Magic Eden account and navigate to the profile menu in the top-right corner. From there, select "Details" next to your wallet address for accessing escrow balances and utilities.
You'll find the balances for both your Main and Escrow accounts displayed.
To view detailed balances, hover over the account balance in the top-right menu, select "Solana," and check the available escrow and main wallet information.
To deposit funds into your Escrow account, simply click on the 'Deposit' option. Input the desired amount you wish to transfer from your Main account to the Escrow account.
Click the pink 'Deposit' button to confirm the transaction.
To withdraw funds from your Escrow account, navigate to the escrow details via the profile menu or sidebar. Click "Withdraw" or use the three-dot menu next to your escrow balance, confirm your selection, and the funds will transfer back to your Main account.
Additionally:
When placing an offer, if your Escrow account balance is insufficient, funds will be transferred from your Main account to your Escrow account to complete the transaction.
Offers across multiple collections exceeding the total amount in the Escrow wallet will remain active until the Escrow balance is depleted, necessitating a top-up.
In the example below you can see offers exceeding the current escrow balance of 1.05 SOL
Important note:
Escrow is a powerful feature but must also be managed accordingly. We’ve added warnings and notifications on Magic Eden to remind you if you have inactive offers. Whenever you deposit funds or top up your escrow account, you may reactivate existing offers. Manage your existing offers and cancel any that you don’t want to be reactivated!
Your funds, your control. Escrow funds always remain in your sole custody, so cancel or change at any time.
If you have any questions or need help, do not hesitate to reach out to our support team by opening a ticket using the chat widget.
For more information, common questions about fund allocation, permanency of escrow funds, and transaction security are addressed in the FAQ section below.