Glossary

Plain-English definitions for terms used throughout MyPact.

Agreement — A smart contract on the blockchain that defines the terms between parties. Can be an escrow (with funds) or terms-only (signatures only).

Approval — When a party confirms that conditions have been met by signing a transaction. Once the approval threshold is reached, funds release automatically.

Base — An Ethereum Layer 2 network built by Coinbase. MyPact uses Base for live agreements because it’s fast and inexpensive (transactions usually cost under $0.05).

Cancel window — A configurable lock period after funding during which the payer cannot cancel. Default is 72 hours. Protects the recipient from bait-and-switch.

Deadline — An optional expiration date on an agreement. If the approval threshold isn’t met by the deadline, the payer can cancel and receive a refund.

Escrow — An arrangement where funds are held by a neutral third party (in MyPact’s case, a smart contract) until agreed conditions are met. Neither side can access the funds unilaterally.

Gas / Network fee — A small fee paid to the blockchain network to process your transaction. On Base, this is usually under $0.05. Gas is paid in ETH, not USDC.

Live mode — Using the Base network with real USDC. For production agreements with real funds. Requires a PAYG, Pro, or Team plan.

Milestone — A stage within an agreement, each with its own USDC amount. Milestones are approved and paid independently, allowing phased payments.

Multi-party — An agreement involving more than two people. MyPact supports any number of parties with configurable approval thresholds.

Non-custodial — MyPact never holds your funds. They go directly to the smart contract on the blockchain. Only the contract logic controls fund movement.

Recipient — The person receiving funds from an escrow agreement. Sometimes called the payee.

Sepolia — Ethereum’s primary test network. MyPact uses Sepolia for test mode — everything works like live mode but with free, valueless test tokens.

Signer — A party to an agreement. Each signer has a wallet address and can approve or sign the agreement.

Smart contract — A program that runs on the blockchain and automatically enforces rules. MyPact’s escrow contract holds funds and releases them only when conditions are met.

Test mode — Using the Sepolia network with free test tokens. No real money involved. Available on all plans, including Free.

Threshold (N-of-M) — The number of approvals needed (N) out of the total parties (M) to release funds. For example, 2-of-3 means any two out of three parties must approve.

Token — A digital asset on a blockchain. MyPact uses USDC (a stablecoin pegged 1:1 to the US dollar) for escrow agreements.

USDC — USD Coin, a stablecoin where 1 USDC = 1 US dollar. This is the token used for all MyPact escrow agreements. USDC is issued by Circle and is one of the most widely used stablecoins.

Wallet — Software that stores your private keys and lets you interact with the blockchain. MyPact supports Coinbase Wallet, MetaMask, and WalletConnect-compatible wallets.

WalletConnect — An open protocol that lets you connect your mobile wallet to web applications. Supports 100+ wallets including Rainbow, Trust Wallet, and others.