Refund Policy

What happens to unclaimed grant funds

Explicit Refund Rules

Refund behavior must be explicit at grant creation time to avoid ambiguity. When you create a grant, you specify exactly when and how funds can be returned if the grant isn't claimed.

Important: Refund rules are set at creation and cannot be changed after funding. This protects builders from arbitrary fund withdrawals.

Platform Fee

When a grant is funded, a 4% platform fee is taken at funding time:

96%

Escrowed for payout

Platform fee

Fee Refunds: By default, the platform fee is non-refundable once a grant is funded — the grant was "offered" and platform resources were consumed for tracking and proof generation infrastructure.

Time-Limited Grants

Deadline-Based Refunds

For grants with a deadline, refunds are available after the claim period ends without a valid claim.

Standard Flow

1Grant deadline passes
2Optional grace period for late claims (if configured)
3Grantor can request refund to specified refund address
4Escrowed funds (96%) returned to refund address

Claim Window

Some grants may have separate qualification and claim deadlines. The claim deadline gives qualified builders time to generate proofs and submit transactions after the work deadline.

Open-Ended Grants

Explicit Cancellation Rules

Open-ended grants have no deadline, so refund rules must be explicitly defined at creation.

Non-Refundable (Donation-Like)

Funds stay locked until claimed. This is the most builder-friendly option — the grant is a permanent commitment.

Refundable After Inactivity Period

"Refundable after N days with no eligible submissions." Balances grantor protection with builder confidence.

⚠ Grantor-Refundable Anytime

"Refundable anytime by grantor" is not recommended — it's not builder-friendly as funds can be pulled while someone is working.

Refund Address

Flexible Return Destination

The refund address is specified at grant creation and can differ from the funding address.

Why Separate Addresses?

Privacy: Refunds go to a different wallet for operational privacy
Ops flexibility: Treasury wallet funds, different wallet receives refunds
Security: Hot wallet funds, cold wallet receives refunds

Note: The refund address cannot be changed after the grant is funded. Choose carefully.

Refund Summary

Grant Type	When Refundable	Amount
Time-limited	After deadline (+ grace period)	96% (escrow only)
Open-ended (non-refundable)	Never	N/A
Open-ended (with inactivity)	After N days, no submissions	96% (escrow only)