> For the complete documentation index, see [llms.txt](https://docs.midcontract.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.midcontract.com/why-midcontract/security-by-design-verified-audited-smart-contracts.md).

# Security by Design: Verified, Audited Smart Contracts

Midcontract is built from the ground up with security in mind — for contracts, payments, and your reputation.

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### **🔍 How Smart Contract Escrow Works**

Each contract is powered by an on-chain smart contract:

* **Escrow Funding**: Clients deposit funds at contract start — locked on-chain until work is approved
* **Automated Logic**: Deadlines, milestones, and deliverables are coded into the contract
* **Secure Payouts**: Funds are released only after both parties agree — no manual steps or risk of non-payment

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### **✅ External Smart Contract Audit**

All contracts were independently audited by **Blaize**, a leading blockchain security firm.

**Audit highlights:**

* Full logic, access controls, and fund security tested
* All critical/high/medium issues resolved
* 10/10 final security score
* Manual + automated tests passed

📄 [View the audit summary →](https://www.midcontract.com/blog/smart-contract-security-audit)

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### **🔒 Your Data Stays Private**

Contract execution happens on-chain, but private info — messages, attachments, sensitive data — is never stored on the blockchain.

Users control what’s visible.

Security without sacrificing privacy.

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### **⚖️ Dispute Handling on Chain**

Disputes rarely happen — but if something does go off-track, we’ve got your back:

* **Easy Escalation**

  Raise a dispute right within your contract in just a few clicks — no emails, no waiting.
* **Clear, Fast Responses**

  The other party is immediately notified and has up to 7 days to respond. If they don’t, the system proceeds automatically.
* **Effortless Evidence Submission**

  Upload screenshots, messages, files, or any other proof directly within your contract.
* **Fair & Transparent Resolution**

  A dedicated dispute manager reviews the case, providing timely updates and clear decisions.
* **No Drama, Just Results**

  Smart contract logic removes unnecessary friction — so everyone can move on.

📑 [See Terms of Service →](https://www.midcontract.com/legal/midcontract-terms-of-service#escrow-return-request)

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### **🛡️ Account Recovery System**

Your account is tied to your wallet, but in case of loss:

* Multi-step recovery protects access
* No centralized custody — your funds stay in smart contracts
* Privacy-first — no sensitive data is stored on-chain