Overview
XvP Settlement coordinates multi-party asset exchanges for DALP assets. Local settlements execute all local flows in one transaction; external-flow settlements use hashlocks and secrets to coordinate with a leg that stays outside the local execution.
XvP Settlement coordinates asset-for-asset exchanges between two or more parties. The platform supports local settlements where every flow executes on the same chain, and external-flow settlements where DALP executes the local leg and uses a hashlock secret to coordinate with a leg that stays outside the local execution.
This overview is for platform operators, asset issuers, and integration teams deciding which settlement pattern to configure before they use the detailed setup and action pages.
The operator owns the settlement design: which assets move, which senders must approve, which cutoff date applies, and whether any external leg can honour the same hashlock and timing. DALP owns the configured local settlement flow, approval state, expiry path, and local execution outcome.
Scope and settlement patterns
The X in XvP is the variable leg of the exchange. In DALP, the same primitive can support delivery-versus-payment and payment-versus-payment patterns when the exchanged assets use DALP-compatible token contracts.
| Pattern | Typical use | What DALP coordinates |
|---|---|---|
| Delivery versus payment | A bond, fund unit, or equity token moves against a tokenised cash leg | Asset flows, sender approvals, expiry, and final local execution |
| Payment versus payment | One tokenised cash asset moves against another | Multi-party token flows and approval state |
| External-flow coordination | A local DALP leg depends on a leg outside the local execution | The local flow, external-flow reference, hashlock, secret reveal, and expiry path |
DALP does not make an external rail or another blockchain settle by itself. For external-flow settlements, the external leg remains a referenced coordination leg. Operators still need the external system or counterparty process that honours the same hashlock and timing.
Choose a settlement mode
Start with the settlement model before you use the action reference. The action pages describe the API steps, but the mode determines which approvals, expiry path, and execution model apply.
| Reader question | Use this path | Why it comes first |
|---|---|---|
| Which settlement type should I configure? | Choose a settlement type | The mode decides whether DALP executes every flow locally or coordinates a local leg with an external leg. |
| Where is the execution model? | XvP execution models | Responsibility checks separate DALP local execution from external-flow, quote, fee, ledger, and evidence duties. |
| How does a same-chain exchange work? | Local settlements | Local settlements explain sender approvals, escrow, cancellation, expiry, and atomic local execution. |
| How does an external-flow exchange work? | HTLC settlements | HTLC settlements explain hashlocks, secret reveal, timelock coordination, and per-chain responsibility. |
| How do I stop or recover a settlement? | Cancel or recover a settlement | Cancellation and expiry recovery depend on the mode, approval state, cutoff date, and HTLC secret state. |
| Which API action do I call for the next step? | Settlement action reference | Use the action reference after the settlement type and current state are clear. |
Compare local and HTLC settlements
| Mode | When to use it | Execution model | Follow-up page |
|---|---|---|---|
| Local settlement | All executable flows are on the same chain and use DALP-compatible token contracts | Senders approve the flows. When the settlement executes, the local flows complete together or the transaction reverts. | Local settlements |
| External-flow settlement | The local DALP leg depends on a referenced leg outside the local execution | DALP stores the external-flow reference, derives or accepts a hashlock, and uses secret reveal to coordinate the local settlement with the external process. | HTLC settlements |
Use a local settlement when DALP owns every executable transfer in the settlement. Use an external-flow settlement when DALP should lock and execute a local leg only after the external side follows the same hashlock coordination.
Simplest working use
The simplest XvP settlement has two local flows on the same chain:
- Create the settlement with
autoExecute,cutoffDate,countryfor V3 identity registration, and aflowsarray where each item hastype: "local",assetId,from,to, andamount. - Each sender approves the settlement for the assets in that sender's flow.
- Execute the settlement. DALP completes the local flows together. If one required local transfer cannot complete, the transaction reverts instead of leaving a partial exchange.
For an external-flow settlement, include at least one local flow and at least one type: "external" flow. The create request must include either a secret or a precomputed hashlock. External flows also include externalChainId and externalAssetDecimals so operators can coordinate the referenced leg outside the local execution.
Key concepts
| Term | Meaning |
|---|---|
| Flow | One asset transfer with a token, sender, recipient, and amount |
| Local flow | A flow DALP can execute in the local settlement contract |
| External flow | A reference to a leg outside the local execution. DALP records its token address, sender, recipient, amount, external chain ID, and external asset decimals for coordination, but does not execute that external leg locally. |
| Approval | A local sender locks the assets for that sender's flow into the settlement contract |
| Hashlock | A 32-byte hash that links a settlement to a secret preimage |
| Secret | The preimage that proves the hashlock and can trigger the external-flow reveal path |
| Cutoff date | The expiry deadline after which operators can use the expiry and withdrawal paths instead of executing the settlement |
Settlement lifecycle
A settlement starts in Pending. Sender approvals move it toward execution. The terminal path depends on whether the settlement executes, is cancelled, or expires.
| Lifecycle point | Meaning |
|---|---|
| Pending | The settlement exists and is waiting for the required sender approvals |
| Ready to execute | A local settlement has the required approvals and can be executed |
| Armed | An external-flow settlement has the required approvals and waits for the secret reveal path |
| Executed | The executable local flows completed successfully |
| Cancelled | The settlement was cancelled before execution |
| Expired | The cutoff date passed before execution |
Local and external-flow states differ
Local settlements and external-flow settlements share the same high-level lifecycle, but the reveal and withdrawal paths differ. Read the mode-specific overview before running an operational procedure.
Operational checks before creating a settlement
- Confirm the XvP Settlement add-on is installed for the target system.
- Confirm each local sender has the balance, permissions, and wallet-verification path needed to approve its flow.
- Set a cutoff date that gives parties enough time to approve or reveal the secret before expiry.
- For external-flow settlements, agree the secret or hashlock process with the external counterparty before creating the DALP settlement.
- Keep the external leg outside the DALP settlement evidence unless your external system can prove that it followed the same hashlock and expiry window.
Further reading
Local settlements
Single-chain settlements where DALP executes the local flows together.
HTLC settlements
Hashlock and secret coordination for settlements with an external flow.
Settlement action reference
Use the action pages after you have chosen the local or external-flow settlement model.
Cancel or recover
Choose the cancellation or expiry recovery path for the settlement state.
Review addon workspaces
Open an installed addon workspace, continue into XvP settlement actions, and review token sale instances from the DALP dapp.
Choose a settlement type
Choose between local XvP settlement and HTLC settlement before you configure flows, approvals, cancellation, or expiry recovery.