Escrow means held in guarantee. When a trade opens, the seller's crypto doesn't go straight to the buyer: it stays held by the contract. It's only released once it's confirmed the other party delivered (paid, shipped, etc.).
Why this protects you
- The seller knows the crypto won't move until the payment is confirmed.
- The buyer knows the crypto is already reserved and can't disappear.
- Neither side depends on the other's good faith: it depends on the contract.
If there's a disagreement, nobody releases anything on their own: a dispute opens and a mediator decides. See Disputes.