Created
Agreement parameters are defined.
Developer Documentation
Contract state from creation to settlement.
Trustless agreements move through explicit states that determine which actions are valid. See the lifecycle in practice through Trustless Network escrow agreements.
Awaiting Funding
Payment instructions are issued.
Funded
Expected ledger activity is verified.
Active
Work and contract timers are in progress.
Review / Revision
Deliverables move through applicable review rules.
Resolved
The agreement reaches release, refund or another terminal state.
State Machine
Each state determines what can happen next.
A structured agreement is easier to reason about when valid actions depend on explicit state. Funding should not behave like review. Review should not behave like settlement. Each phase has its own purpose and permitted transitions.
Created → Awaiting Funding
Agreement terms exist, but the workflow has not yet verified the expected payment.
Awaiting Funding → Funded
Expected ledger activity is verified and associated with the agreement.
Funded → Active
Work begins under the deadlines, milestone payment rules and other conditions defined by the agreement.
Active → Review
Submitted work can move into a review period where the applicable approval or revision rules become relevant.
Review → Revision
When revision rights apply, the agreement can return to a defined correction period rather than becoming an open-ended negotiation.
Settlement → Resolved
Release, refund or another terminal outcome closes the active agreement and records the final state.
Why State Matters
Clear state reduces ambiguity.
When participants can see where an agreement stands, they can also understand which actions are available and what conditions move the workflow forward. The system does not need to improvise the rules at the moment money moves.