Escrow Fee
Written by Christopher Krassnig - Founder - Kairos Exchange and ZenoX Media.
Published
- Checks in every memo8
- Automatic on day one3 of 8
- Read by handad spend and processor payouts
- Tracked ecom salesEUR 200M+ZenoX ad-management figures, not Kairos deal volume - Kairos hasn't closed a deal yet.
Escrow Fee is what a licensed third party charges to hold a buyer's funds until the deal closes, then release them. It is priced as a percentage that falls as the deal grows: Escrow.com's schedule runs from 2.6 percent on the smallest deals down to 0.95 percent past 3,000,000 dollars, with a minimum on every band up to that point. On Kairos, buyer and seller split it 50/50.
What the Fee Actually Buys
Holding the money is not passive. The provider releases funds only once the asset purchase agreement is signed, every asset flagged critical in the transfer playbook is handed over and ticked off, and the buyer confirms the transfer landed - one open item blocks the release. Split 50/50 between buyer and seller on both lanes, and Kairos never collects any part of it: the fee is the provider's own, not a markup. Cancel before that point and there is no success fee either way, but refunds of escrowed funds follow the escrow provider's own terms, which both parties accept directly with it, not a Kairos policy layered on top. The rate itself is not flat - it runs highest on the smallest transactions and steps down as the price rises.
Not to Be Confused With
- Success Fee
- the success fee pays the marketplace for the sale; the escrow fee pays a separate, licensed third party just to hold the funds safely.