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About CheckSig Clear
FAQ
News and InsightsEscrow Accounts
CheckSig Clear offers a secure, transparent, and compliant escrow service designed to protect digital assets used as collateral in crypto lending or other pledge-based agreements. While not authorized to provide credit, the platform acts as an impartial custodian, safeguarding assets throughout the entire transaction lifecycle.
How the Escrow Service Works
Collateral Deposit
Parties involved in a crypto asset pledge agreement deposit collateral,such as Bitcoin, Ethereum, or other digital assets, into a secure and auditable escrow account, managed by an independent and impartial third party. Deposited assets are held in full compliance with regulatory standards, supported by a custody infrastructure designed to enable audits and independent verification at any time.
Secure Management
Once in custody, the assets are fully insured and protected by advanced security protocols. Strict asset segregation is enforced to prevent any form of commingling, ensuring that the pledged collateral remains shielded from the escrow’s creditors. This guarantees the highest level of protection and strengthens trust among all parties involved.
Complete Transparency
Through a Proof-of-Reserves system, all parties can verify the existence and custody of the locked assets at any time. Real-time visibility over escrowed assets ensures full transparency, allowing continuous monitoring and making the entire process traceable, clear, and verifiable from start to finish.
Contractual Conditions
Assets remain in custody until all contractual obligations are fully satisfied. Upon loan maturity or contract termination, the collateral is liquidated. Additionally, should predefined risk thresholds be exceeded, liquidation is triggered automatically, executed under best market conditions (best execution), ensuring the protection of all parties’ interests.
In connection with crypto-backed loans, CheckSig does not act as a lender, promoter, intermediary, agent, or finder. CheckSig does not offer financial advice or solicit, arrange, or facilitate lending transactions.
CheckSig’s sole function in such arrangements is to serve as a neutral escrow agent, holding digital assets in custody and carrying out instructions solely as directed by the lender and the borrower. Although CheckSig is contractually bound to act in accordance with the terms of the loan agreement, it does not participate in the negotiation or determination of any loan terms—including, without limitation, the loan amount, interest rate, duration, or collateral requirements—all of which are independently agreed upon by the contracting parties.
