# Local settlements

Source: https://docs.settlemint.com/docs/user-guides/system-addons/xvp-settlement/actions/cancel/local-settlements
Learn how to cancel a local XvP settlement and return locked assets to senders.
Any local participant can cancel at any time before execution.




Cancelling a local settlement stops the exchange and returns all locked assets
to their original senders. For local settlements, cancellation is straightforward.

## Who can cancel [#who-can-cancel]

Any **local participant** (sender or recipient in a local flow) can cancel
a local settlement at any time before execution.

| Settlement state               | Can cancel?       |
| ------------------------------ | ----------------- |
| **Pending** (not all approved) | Yes               |
| **Ready** (all approved)       | Yes               |
| **Executed**                   | No                |
| **Expired**                    | No - use withdraw |

<Callout type="info" title="Unilateral cancellation">
  Unlike HTLC settlements, local settlements can be cancelled by any single participant at any time. No voting or
  agreement from other parties is required.
</Callout>

## Prerequisites [#prerequisites]

* You are a local participant (sender or recipient in a local flow)
* The settlement has not been executed or expired

## Steps [#steps]

<Steps>
  <Step>
    ### Open the settlement [#open-the-settlement]

    Navigate to **Settlements** and find the settlement you want to cancel.
  </Step>

  <Step>
    ### Cancel the settlement [#cancel-the-settlement]

    Click **Cancel** on the settlement detail page.

    Review the confirmation and click **Confirm**. Authenticate with your PIN or OTP.
  </Step>

  <Step>
    ### Verify cancellation [#verify-cancellation]

    After the transaction confirms:

    * Settlement status changes to **Cancelled**
    * All locked assets are returned to their original senders
    * The settlement cannot be reactivated
  </Step>
</Steps>

## What happens after cancellation [#what-happens-after-cancellation]

* All escrowed assets are returned to their original sender addresses
* The settlement permanently enters Cancelled state
* No further actions can be taken on this settlement

## Troubleshooting [#troubleshooting]

| Issue                     | Solution                                                              |
| ------------------------- | --------------------------------------------------------------------- |
| Cancel button not visible | You must be a local participant (sender or recipient in a local flow) |
| Cancel button disabled    | Settlement may be already cancelled or executed                       |
| Transaction fails         | Check if settlement was executed or cancelled by another party        |

## Alternative: Withdraw from expired [#alternative-withdraw-from-expired]

If the settlement expired (cutoff date passed), use
[Withdraw expired](/docs/user-guides/system-addons/xvp-settlement/actions/withdraw-expired) instead.

## Next steps [#next-steps]

<Cards>
  <Card title="Local settlement walkthrough" href="/docs/user-guides/system-addons/xvp-settlement/local/walkthrough">
    Step-by-step guide to completing a local settlement.
  </Card>

  <Card title="Create settlement" href="/docs/user-guides/system-addons/xvp-settlement/actions/create">
    Create a new settlement after cancellation.
  </Card>
</Cards>