# Creating a Contract: Setup, Scope & Terms

Creating a contract on Midcontract is fast and flexible.

Any party — freelancer, client, or agency — can initiate it. Every agreement is enforced via smart contract escrow.

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### **🟢 Step 1: Start a New Contract**

From your dashboard, click **“Create Contract”**.

You’ll be asked to provide:

* Contract name
* Email of the other party
* Payment method — stablecoin (with optional fiat on-ramp via our partner service)

Only one side needs to create the contract — the other will receive an invite to review and accept.

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### **📋 Step 2: Add Project Details**

Specify:

* **Project Category** — e.g., Design, Development, Marketing
* **Project Requirements** — describe deliverables, scope, and expectations

This ensures clarity and alignment for both parties.

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### **💰 Step 3: Set Payment Type & Budget**

Choose your contract structure:

* **Fixed Price** — single or milestone-based
* **Hourly Rate** — paid for tracked hours
* **Retainer** *(coming soon)* — flat fee per task unit

Then, set the total budget and due date.

You can break it into milestones if needed.

[📄 Learn about contract types →](https://docs.midcontract.com/why-midcontract/types-of-freelance-contracts-you-can-create)

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### **🧐 Step 4: Review & Send**

See a full preview of the contract:

* Recipient’s email
* Scope and deliverables
* Payment method
* Budget and fees

If everything looks good, click **Send Contract**.

The recipient will be notified and can accept the terms.

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### **🔐 Step 5: Identity Verification**

Before the contract goes live, both parties must complete **KYC verification**.

This is a one-time process to ensure compliance and reduce fraud.

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### **✅ Step 6: Finalize Setup**

Once both parties have approved the contract and completed verification, it’s time to connect wallets.

[🔗 Wallet connection guide →](https://docs.midcontract.com/wallet-connection-secure-access-to-smart-contracts)

At this stage, the contract is **pending activation** — it will only go live after:

* Both wallets are connected
* Funds are deposited into escrow

[💳 Learn how escrow funding works →](https://docs.midcontract.com/funding-the-contract-how-clients-deposit-to-escrow)


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