# Commodities Seller

## What this route does. 

You win orders and get **paid on proof.** EDMA aggregates buyer demand, you accept a **fixed-price RFQ**, e-sign the **MPA + Milestone Schedule**, and ship. When **Event/Milestone Tokens (EMTs)** mint on source-signed evidence, escrow releases the matching tranche. 

**No EMT, no funds**. \
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Protocol fees are in $EDM (0.5% per milestone on the release amount, capped); **50% of each fee burns** (effective burn ≈ 0.25% of order, caps permitting).

### Scope — what you can sell

**In scope:** 

Any product shipped as **≥ 1 full container load (FCL)** — 20’/40’ dry & HC, ISO tank, reefer, flexitank-in-20’, IBC/drums — **with objective specs and verifiable milestones** (metals/minerals, agri/foodstuffs, energy products, chemicals/fertilizers, industrial goods).

**Included**: bulk/tanker/breakbulk; LCL/parcel; bespoke one-offs without objective QC.

### States (map in one line)

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**RFQ\_Open → Bidding → Sourcing\_Filled (100%) → Awarded → Contracted (MPA) → Funded (EDUSD 1:1 locked) → On\_Board\_EMT → Cleared/Received\_EMT → Delivered/Assay\_EMT → Closed.**
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Every transition emits an on-chain event. **EMTs are non-transferable proofs**, not tradables.

### How it works

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### Onboard (once)

KYC/KYB, beneficial owners, sanctions/PEP, site & capacity disclosure, sample BL/CoA set, insurance posture, Quality Certificates → **validated.**
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### Bid

You **accept the buyer’s fixed price**, commit **10–100% of quantity**, and **accept the buyer’s milestones** (no edits).
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### Award & Contract

When EDMA reaches **100% fill**, sourcing freezes and the buyer signs **one MPA with EDMA**. Your sub-lots + ship-from sites are locked in the **Allocation Sheet** annex, along with **tranche %, QC/assay formula**, timelines/SLAs, fee-cap class.
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### Funded → EDUSD 1:1 pre-allocation (locked).

Upon buyer funding, EDMA **mints EDUSD 1:1** and **pre-allocates it to your wallet as locked EDUSD** **by sub-lot & tranche.**

* **Locked EDUSD is visible**, and spendable inside Edma Marketplace. Bring in your suppliers and pay them in EDUSD while you work on the order.
* **Proof-of-Reserves (PoR):** T+0 per funding (custodian receipt + bank/issuer attestations) with daily roll-up on-chain.
* **Custody:** segregated, **bankruptcy-remote escrow**; EDUSD behaves as a non-transferable **escrow receipt** (movable only by payout/redemption contracts).
* **Redemption SLA**: on cancellation/surplus, *locked EDUSD* **burns 1:1** and fiat redeems **T+0/T+1** via wire/SEPA/ACH/USDC per MPA.
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### Ship & attest → EMTs.

You ship and lodge **source-signed evidence**. When **PoV** passes, EDMA mints an **EMT** for your **contract•lot•milestone** and the matching tranche **releases automatically.**
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### Payout

Payout. On EMT, the **contract converts locked EDUSD → spendable** and pays you (or **burns & redeems 1:1** to your payout rail). The **protocol fee (0.5% of that tranche) is charged in $EDM; 50% burns.**
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<img src="https://4141632533-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvCX7EzuE9nwtTuIaxXGQ%2Fuploads%2FTD1f9bICtPKgqjmgt41s%2Ffile.excalidraw.svg?alt=media&#x26;token=bf900107-c14d-4d1b-80f6-9bc59f17a3ae" alt="" class="gitbook-drawing">

### PoV - what actually gets checked

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### Capture & sign (source systems, UTC).

* **On board:** terminal TOS move, carrier EDI, BL/SoR (hash-linked).
* **Cleared / Received:** customs entry/exit or 3PL WMS receipt (time/place/qty).
* **Delivered:** POD with geotag/time or gate EDI.
* **Assay / CIQ:** lab CoA with full chain-of-custody.
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### Verify (independent quorum, defaults).

* *On board* → **PORT (TOS)** + CARRIER (EDI) (+ INSPECTOR policy-based)
* *Cleared/Received* → **CUSTOMS** or **WMS + BROKER/OPERATOR**
* *Delivered* → **RECEIVER POD** + CARRIER/3PL
* *Assay/CIQ* → **LAB** (+ INSPECTOR where required)
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### Fallback & SLA

If a role is offline > **X h**, allowed fallbacks include national single window / port community system data (policy-listed). **Attestor SLAs** (latency, uptime) and **bonds/slashing** are public.
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### Gate (admissibility, in code)

Before any release we enforce:

1. **Quorum present** (registered keys/roles, live)
2. **Equality of evidence** (every counted attestation references the **same evidenceHash**)
3. **One-claim exclusivity** (one EMT per **contract•lot•milestone** network-wide)\
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   **If any rule fails: no EMT, no funds.**
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### Revocation SLA & EMT-R

Revocation freezes releases **< 24h**; corrected attestations mint EMT-R (linked to the revocation hash) and payout resumes.
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### Incoterms → default milestones

| **Incoterm** | **Milestones (default)**                              |
| ------------ | ----------------------------------------------------- |
| **FOB**      | On Board → Delivered/Assay → Close                    |
| **CFR/CIF**  | On Board → Cleared/Received → Delivered/Assay → Close |
| **DAP**      | Cleared/Received → Delivered/Assay → Close            |
| **DDP**      | Delivered/Assay → Close                               |

### Evidence — minimum fields (short data dictionary)

* **On board**: `contractId, lotId, blNo, vesselVoy, containerIds[], loadPort, timeUTC, tosRef, carrierEdiRef, sorHash`
* **Cleared/Received**: `contractId, lotId, customs/WmsId, location, timeUTC, qty/weight`
* **Delivered:** `contractId, lotId, podId, geotag, timeUTC, gateEdiRef`
* **Assay/CIQ**: `contractId, lotId, labCoaId, cocIds, method, results, varianceCalc`

#### claimId (prevents reuse):

`claimId = keccak256(buyerId, supplierId, mpaId, lotId, milestoneCode, incoterm, hash(containerIds[]), vesselVoy, loadPort, dischargePort, timeStartUTC, timeEndUTC, evidenceHash)`

### QC / assay (tie-break baked in)

* **Primary lab** per MPA; if outside tolerance, second lab (pre-named).
* **Tie-break:** choose best-of-two or average-of-two globally.
* The **variance formula auto-applies** (`premia/penalties, moisture/impurity, shortages`) **before** EDUSD releases.

### Fees, caps, burn (correct & predictable)

* **0.5% per milestone** on the **tranche** released; **caps per tranche: $5k (≤ $1M), $12.5k ($1–5M), $25k (> $5M)**
* **EDM-only; 50% of each fee burns** (never discounted) → effective burn ≈ 0.25% of order (subject to caps)
* **Who pays:** supplier at release (buyer can optionally **Paymaster** EDM with max-slippage set by buyer; if off and EDM short → **clean revert**, escrow safe)
* **Admission prefund (EDM):** <kbd>min(max(0.02 × projected 3-month releases, $20), $1,000);</kbd> withdrawable post-close

### Funding SLA & supplier protections

* **Top-up deadline:** buyer must fund so your next tranche’s locked EDUSD exists ≥ 24h before the expected EMT.
* **If missed:** your EMT either won’t be admissible or mints into Pending Funds; interest/penalty accrues to buyer per MPA from the timestamp.
* **After D+Y:** you may cancel remaining lots and net demurrage/penalty from buyer’s Admission Prefund/performance bond.
* **Pro-rata release** for unaffected sub-lots continues.

### Exceptions & logistics frictions

* **Transshipment / split BLs / rollovers:** supported. Sub-movements share the same evidenceHash; the contract summarizes to one EMT.
* **Short-shipment / overage:** auto-adjust at unit basis; record variance in the close packet.
* **Demurrage / detention / free-days:** responsibility defined in MPA; net outside tranche or per clause.
* **Force majeure:** evidenced; EMT timers pause until FM ends.

### Compliance & legal

* **Screening:** sanctions/denied-party, export controls/dual-use, anti-boycott, end-use — at RFQ and Award; EDMA blocks award/funding if screening fails.
* **Insurance hook:** CIF/DDP (and reefer) include cargo insurance binder hash in evidence.
* **Arbitration & law:** *\[ICC/SIAC/LCIA]*, seat *\[city]*, governing law *\[jurisdiction]* (defined in MPA).

### Tier-2 Pay-Through (pay upstreams in EDUSD)

Before your tranche is unlocked (EMT minted), you can **pay your upstream suppliers directly in EDUSD** under the deal umbrella—no bank detours.

* **Whitelist T2 vendors** (Vendor Addendum; KYC/KYB).
* **Allocate payables** from **spendable EDUSD** by PO/invoice.
* **Optional vendor proof** (GRN/weighbridge/service completion) can gate T2 payouts.
* **No extra protocol fee** for EDUSD vendor transfers (gas only). Commodity fees were charged on your EMT release

### EDUSD Merchant Spend

Spend **EDUSD** with **whitelisted merchants** (freight, inspection, warehousing, packaging) **without converting to fiat**.

* **Merchant Settlement Contract** receives your EDUSD → merchant holds, offsets payables, or burns & redeems 1:1 to bank rails per SLA (T+0/T+1).
* **No protocol fee** to spend EDUSD with merchants (gas only).
* **All merchant settlements screened** (AML/sanctions); only **whitelisted** merchants.

### Audit & ops

* **Explorer KPIs:** PoV latency (p50/p95), attestor uptime, revocation response, funding SLA breaches, releases failed for EDM shortfall (Paymaster on/off), double-claim attempts blocked.
* **Audit export:** CSV/JSON lineage (contractId, lotIds, EMT ids, fees, burns, PoR refs).

### Worked example

**Order: $3,600,000 CIF;** tranches **20% / 50% / 30%.** Buyer funds **M1** only.

#### M1 — On Board ($720,000).

**Tier-2:** **Before EDUSD is unlocked** you route **$450,000 to Plant A**, **$150,000 to Packaging**, **$120,000 to Trucking** in EDUSD. They all start working immediately; Trucking is gated by a Vendor Proof (GRN) and settles on proof. **No extra protocol fee** for these EDUSD transfers.

Evidence (TOS + carrier EDI + BL) → **EMT**.

Protocol fee = **$720,000 × 0.5% = $3,600** in $EDM → **burn $1,800**, treasury $1,800.

**Locked EDUSD $720,000 → Unlocked and spendable** and pays to you.

#### M2 — Cleared/Received ($1,800,000).

You keep **$1.2M; $600k** goes to a 3PL Merchant in EDUSD. Merchant redeems on **EMT issuance** to fiat per SLA.

Buyer tops-up escrow **≥24h** prior (funding SLA). Customs or WMS receipt → **EMT**.

Fee = **$9,000 → burn $4,500.**<br>

#### M3 — Delivered/Assay ($1,080,000).

Lab CoA shows − **0.2% grade variance;** MPA formula haircuts $2,160 → **release $1,077,840.**

**Fee** = $1,077,840 × 0.5% = **$5,389.20** → **burn $2,694.60.**&#x20;

**Contract closes.**

**Totals:** fees $3,600 + 9,000 + 5,389.20 = **$17,989.20**; burn ≈ **$8,994.60** (≈ 0.25% of order). EDUSD vendor/merchant spends incurred no extra protocol fee (gas only).

### Supplier checklist

* **KYC/KYB complete**&#x20;
* **Catalog & QC formula** published&#x20;
* **Allocation Sheet** confirmed&#x20;
* **EDUSD “green”** for next tranche (funding SLA met)
* **Evidence rails live** (TOS/EDI, customs/WMS, lab; **UTC** time-sync)
* **EDM buffer loaded** (or Paymaster ON)
* **Cargo insurance** binder attached when required&#x20;
* **Tier-2 vendors & Merchants whitelisted** if you plan to pay them in EDUSD.

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**Bottom line:**&#x20;

You **see** your money **pre-allocated 1:1 as locked EDUSD**, you **unlock** it **only on proof (EMTs),** and you can pay **upstream vendors or merchants in EDUSD** immediately—no bank delays—while **the protocol burns half the fees** and the audit trail stays machine-readable end to end.
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