Settle

What “Settle” means on EDMA

Settle is the money moment. It’s when a proved event turns into a payment and a fee/burn entry you can file.

  • Trade: A milestone release—after the Gate PASS and EMT mint—flips the pre-assigned slice from Locked EDSD to Unlocked EDSD and pays the same day.

  • Tokens: A Buy (or Retire) finalizes ownership (or retirement) and posts the fee; no trade settles without a PoV-valid listing and One-Claim free.

Invariants that never move: No EMT, no funds · One-Claim · Must-fund before shipping · 50% of each protocol fee burns in EDM at settlement/release.

A. Trade — milestone Release

Business flow (what ops feel):

  1. Gate PASS → EMT minted. The dossier (e.g., PSI/COA, BL + seal photo/number, customs EDI, DC receipt + QA) matches the checklist; the EMT for this stage/sub-lot mints.

  2. (Optional) Buyer review window. If configured (0–4h), the buyer can Block with a reason; do nothing → auto-release.

  3. Release (Settle). The slice flips Locked EDSD → Unlocked EDSD and pays immediately. Any funded-on-proof assignments tied to this stage auto-settle.

  4. Receipt & ledger. You get a human-readable receipt and a proof page; the ledger shows the fee line, burn hash, and new Locked/Unlocked balances.

What the contract enforces (deterministic, no shortcuts):

  • PASS + EMT required: Sequencer ordering cannot force a release.

  • Must-fund for post-production gates: Without the top-up, status is Pending Funds even if proof is perfect.

  • Caps: Stage fee = 0.5% of the released amount, capped per tranche (≤ $1M → $5k, $1–5M → $25k, > $5M → $50k).

  • Burn: Exactly 50% of that stage’s fee burns in EDM at this release (if the fee was prepaid in EDSD/USD, the burn half is converted to EDM now); the treasury half routes to buckets.

  • Conservation: Locked + Unlocked = funded – refunds (per order), before and after every release.

  • Schedule completion gating: Off-platform cash-out remains disabled until the seller’s schedule completes.

Failure / pause states you may see (clear reasons, easy fixes):

  • E_PENDING_FUNDS: Top-up missing; fund, then release.

  • E_SEAL_MISMATCH / E_LOT_LIST_MISMATCH / E_TEMP_OUT_OF_RANGE: Fix the file or re-inspect.

  • Revocation after an earlier pass: Downstream slices freeze; append corrective evidence and resume.

  • Dispute: Variance math applies; partial pay or replacement; release posts the adjusted amount with a reason.

Fees & extras at release (what posts when money moves):

  • Protocol fee: 0.5% per milestone (caps above) — pre-paid at award; consumed here.

  • Burn: 50% of the stage’s fee in EDM (burn tx hash on the receipt & proof page).

  • Seller assignment fee: 1% only if a funded-on-proof assignment settles at this release (operational fee; not burned).

  • Cash-out fee: 0.5% applies later, only when the seller withdraws off-platform after schedule completion.

API & webhooks (what your systems call/watch):

  • POST /v1/trade/release/{order}/{stage}: Flips funds, records fee, emits burn hash.

  • Webhooks: trade.milestone.passed → trade.release.posted · fee.burn.posted · trade.slice.frozen/unfrozen (if paused).

B. Tokens — Settlement (Buy) and Retirement

Business flow:

  1. PoV-valid listing with One-Claim free.

  2. Buy (or Retire) settles in EDSD; ownership changes (or the unit becomes permanently retired).

  3. Fee posts and burn happens now; receipt + proof pack are issued.

What the contract enforces:

  • PoV badge and One-Claim check: Before any settlement; frozen listings refuse to settle.

  • Fee: 4% total per settlement (default 2% buyer + 2% seller).

  • Burn: 50% of that fee burns in EDM at settlement (burn hash on the receipt).

  • Retire: Irreversible; retirement receipt/URI added to the proof page.

API & webhooks:

  • POST /v1/tokens/settle · POST /v1/tokens/retire: Settle or retire a token.

  • Webhooks: tokens.settlement.posted · tokens.retirement.proofpack.ready · fee.burn.posted

C. Atomicity & idempotency

Settlement is all-or-nothing in a single transaction:

  1. Gate PASS (and EMT mint for Trade)

  2. One-Claim finalize

  3. Funds flip (Locked → Unlocked) or ownership/retirement finalize

  4. Fee line posted, 50% burn executed in EDM

  5. Receipt emitted with proof/burn links

Replays with the same (order, stage, sublot) or settlement_id become no-ops. There is no cross-block hold that could leak value.

D. Operator checklist

  • Fund before you ship: Expect E_PENDING_FUNDS otherwise.

  • Submit complete evidence: Same PoV hash across roles; review windows are for true mistakes, not routine vetos.

  • For partials/variance: Let the platform compute; the math is the MPA’s, not email’s.

  • Watch receipts: Fee line, burn hash, and new Locked/Unlocked totals should reconcile automatically to the ledger.

  • Don’t plan off-platform cash-out: Until the schedule completes; use Unlocked EDSD to pay EDMA invoices in the meantime.

E. One-glance matrix

Settle for…

Trigger

Moves cash?

Protocol fee

Burn (EDM)

Cash-out

Trade (Release)

EMT minted + (optional) review window cleared

Yes (Locked → Unlocked EDSD)

0.5%/milestone, capped per tranche

50% at release

Enabled after schedule completes (0.5% fee)

Tokens (Buy)

PoV-valid listing + One-Claim free

N/A (ownership changes)

4% total (2/2 default)

50% at settlement

N/A

Tokens (Retire)

PoV-valid listing + One-Claim free

N/A (asset retired)

4% total

50% at retirement

N/A

Drawing

Plain recap

Settle is where facts become cash (Trade) or final ownership/retirement (Tokens). In Trade, a proven gate mints an EMT and flips Locked EDSD → Unlocked EDSD; the stage fee posts and 50% burns in EDM at that moment. In Tokens, a Buy/Retire charges 4%, burns 50%, and records the proof. No proof, no settlement; no release, no burn. That’s why the ledger stays honest and the audit trail stays short: PASS → EMT/settle → flip/own → fee → 50% burn → receipt.

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