> ## Documentation Index
> Fetch the complete documentation index at: https://learn.rethink.fund/llms.txt
> Use this file to discover all available pages before exploring further.

# Escrow, Cancellation, and Fee Mechanics

> Why paying $1 for optionality is rational, not cautious

The escrow model is intentionally simple. When a user initiates a trade:

* Capital ( C ) is escrowed for 10 minutes
* No execution occurs
* The user retains full control at expiry

At the end of the window, the choice is binary:

* Execute immediately
* Cancel for a flat **\$1 fee**

This fee is not arbitrary. It reframes the trade mathematically.

Let:

* ( C ) = trade size
* ( L ) = expected loss from impulsive entry
* ( f = \$1 )

In real markets:

```
L ≫ f
```

Impulse-driven losses routinely range from **5–30%** within minutes. On a \$300 trade, that’s \$15–\$90. Rethink allows users to replace an unbounded downside with a fixed, known premium.

This is why Rethink feels intuitive to degens. It’s not “risk management”.\
It’s **buying time as an option**.

Just like Buy Now, Pay Later reframed credit as convenience, Rethink reframes restraint as *edge*. You’re not being cautious. You’re paying \$1 to avoid bad fills.