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🔒 SETTLEMENT DOMAIN FORMAL SPEC v1.0
0. Status
Version: 1.0
Status: Canonical
Authority: packages/core/settlement/*
Binding to: GovernanceRecordType
Canonical RecordTypes:
SETTLEMENT_INTENT
SETTLEMENT_EVENT
- Domain Purpose
Settlement domain governs:
Monetary commitments
Escrow lifecycle
Conditional release logic
Refund resolution
Governance-bound financial execution
Settlement is ledger-driven, not execution-driven.
Execution layer is external.
Ledger = authoritative truth.
- Canonical Record Types
2.1 SETTLEMENT_INTENT
Represents:
Creation of settlement obligation
Escrow configuration
Asset specification
Binding to policy
Binding to subject (auction/tender/etc)
READ 2026-03-28T23:42:21.903Z
READ 2026-03-29T04:52:41.869Z
CORE STRICT SAFE DELETE AFTER RERUN REPORT
PUBLIC | DRAFT | v1.0.0
READ 2026-03-29T03:13:33.020Z
action = SETTLEMENT.CREATE
Intent does NOT move funds.
Immutable obligation state
Represents lifecycle progression.
SETTLEMENT.DEPOSIT_CONFIRMED
SETTLEMENT.RELEASE_REQUESTED
SETTLEMENT.RELEASE_EXECUTED
SETTLEMENT.REFUND_EXECUTED
Must have prior ALLOW ACCESS_DECISION
Must reference same subjectId
Must reference same policyHash
Must follow lifecycle constraints
- Settlement Lifecycle State Machine
Settlement lifecycle is derived from ordered events.
State is computed by ledger replay.
3.1 Logical States (Derived)
Derived State Condition
CREATED INTENT exists
ESCROW_OPENED ESCROW_OPENED event exists
FUNDED DEPOSIT_CONFIRMED exists
RELEASE_PENDING RELEASE_REQUESTED exists
RELEASED RELEASE_EXECUTED exists
REFUNDED REFUND_EXECUTED exists
4. Lifecycle Invariants
4.1 Authorization Invariant
For each Settlement record:
Latest matching ACCESS_DECISION(subjectId, action, policyHash) must be:
DEPOSIT_CONFIRMED before ESCROW_OPENED
RELEASE_EXECUTED before RELEASE_REQUESTED
RELEASE_REQUESTED after REFUND_EXECUTED
RELEASE_EXECUTED after REFUND_EXECUTED
Events must not violate prior terminal state:
No further lifecycle events allowed.
Settlement validation must:
Not depend on environment config
Not depend on network responses
Not depend on blockchain state
Ledger replay MUST produce identical lifecycle result.
- Cross-Domain Dependencies
Policy freeze (if policy-bound)
Parent process closure (Auction CLOSED / Tender CLOSED)
KES_VERSION_RATIFIED if settlementProfileHash is KES-bound
Settlement must not activate before parent domain completion.
Settlement supports abstraction layer:
Protocol does not execute funds.
Execution layer performs actual movement.
- Cryptographic Traceability
Each SETTLEMENT_EVENT must include:
event → authorization decision → policy
Ensures forensic traceability.
❌ No settlement without intent
❌ No event without prior authorization
❌ No duplicate milestone release
❌ No re-open after terminal state
❌ No mutable state outside ledger
Settlement Domain guarantees:
Authorization trace binding
Cross-domain ordering safety
PROTOCOL_GOVERNANCE_INVARIANTS.md
GOVERNANCE_STATE_MACHINE_MATRIX.md
METADATA_KEY_ALLOWLIST.md
Failure = protocol drift.
Settlement Domain belongs to:
Blockchain execution engine
Governance-level settlement authorization and lifecycle validation engine.
| evidenceSummary | TEXTAREA | Yes | F-IP-04-02-EXAMPLE-001 |
Section: Inspection | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Inspector | Reviewed by: UNDEFINED - GOVERNANCE DECISION REQUIRED | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
Section: Inspection | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Inspector | Reviewed by: Reviewer (if applicable) - UNDEFINED | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
Section: Review | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Reviewer (if applicable) - UNDEFINED | Reviewed by: UNDEFINED - GOVERNANCE DECISION REQUIRED | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
Section: Decision | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Governance Manager | Reviewed by: Quality Manager | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
Section: Correction | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Governance Manager | Reviewed by: Inspector | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
Section: Closure | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Governance Manager | Reviewed by: Quality Manager | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
Section: Submission / Assignment | Workflow owner: DOCUMENT_CUSTODIAN | Status: PLACEHOLDER
Created by: Inspector / Reviewer - UNDEFINED | Reviewed by: Governance Manager | Approved by: UNDEFINED - GOVERNANCE DECISION REQUIRED
Governance decision required for unresolved role assignments.
MANDATORY
Section: Evaluation | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Evaluator | Reviewed by: Quality Reviewer | Approved by: Governance Manager
Section: Selection | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Evaluator | Reviewed by: Procurement Admin | Approved by: Governance Manager
Section: Decision | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Governance Manager | Reviewed by: Quality Reviewer | Approved by: None
Section: All Sections | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: All roles | Reviewed by: Governance Manager | Approved by: None
Section: Closure | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Procurement Admin | Reviewed by: Governance Manager | Approved by: None
MANDATORY
Section: Settlement Confirmation | Workflow owner: FINANCIAL_OPERATOR | Status: PLACEHOLDER
Created by: Financial Verifier | Reviewed by: Oversight / Audit | Approved by: Oversight / Audit
Section: Closure | Workflow owner: FINANCIAL_OPERATOR | Status: PLACEHOLDER
Created by: Oversight / Audit | Reviewed by: Oversight / Audit | Approved by: Oversight / Audit
Section: All Sections | Workflow owner: FINANCIAL_OPERATOR | Status: PLACEHOLDER
Created by: System | Reviewed by: Oversight / Audit | Approved by: Oversight / Audit
MANDATORY
Section: Submission | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Bidder | Reviewed by: Procurement Reviewer | Approved by: Governance Approver
Section: Submission | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Procurement Manager | Reviewed by: Governance Reviewer | Approved by: Governance Approver
Section: Opening | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Procurement Manager | Reviewed by: Governance Reviewer | Approved by: Governance Approver
Section: Evaluation | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Evaluator | Reviewed by: Governance Reviewer | Approved by: Governance Approver
Section: Evaluation | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Evaluator | Reviewed by: Procurement Reviewer | Approved by: Governance Approver
Section: Decision | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Procurement Manager | Reviewed by: Governance Reviewer | Approved by: Governance Approver
Section: Decision | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Procurement Manager | Reviewed by: Governance Reviewer | Approved by: Governance Approver
Section: Closure | Workflow owner: COMPLIANCE_OFFICER | Status: PLACEHOLDER
Created by: Procurement Manager | Reviewed by: Governance Reviewer | Approved by: Governance Approver
MANDATORY
Section: Namespace | Workflow owner: CHAIN_OFFICER | Status: DEFINED
Created by: CHAIN_OFFICER | Reviewed by: COMPLIANCE_OFFICER | Approved by: GOVERNANCE_ADMIN
Section: Policy Change | Workflow owner: COMPLIANCE_OFFICER | Status: DEFINED
Created by: COMPLIANCE_OFFICER | Reviewed by: GOVERNANCE_ADMIN | Approved by: GOVERNANCE_ADMIN