# Escrow

MIDNIGHT will sometimes act as an escrow provider between parties during commerce.&#x20;

For example, when two independent parties transact in a sale, but the seller has the physical counterpart in possession. Once the buyer makes payment, the authority of ownership of the digital counterpart is held in custody by MIDNIGHT. The custody is released upon successful delivery to the buyer. Alternatively, if the shipment is rejected, the seller will retain custody upon return.

If a physical counterpart is stored in the vault, there is no need for escrow during trading. Similarly, if there is no physical counterpart, escrow is not necessary.&#x20;


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