What is Escrow?

Escrow is a financial term used to describe a secure area that assets are kept where neither party involved in the transaction can access them.  

In Liqd’s case, it’s a smart contract where the Borrower sends their asset once a Lender approves a loan.  Both the Asset AND the funds of the loan are passed through Escrow as a receipt of the transaction.  Aka the middle-man who holds the valuable asset and distributes them upon completion of certain terms.  A lenders funds still pass through escrow before being sent to the borrower.

Once a lender approves a loan to you on your asset, it will no longer appear in your wallet. It is in escrow and will remain there until you

1. Repay the loan in full with interest, returning it to your wallet from escrow

or

2.  Default on your loan by not repaying it based on the terms agreed (aka liquidation) at which point the lender can request it from escrow