Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — Decentralized Settlement, Escrow, and Payout Framework for Licensed Asset Transactions
1. Purpose
This document defines the high-level architecture, security model, and implementation requirements for the LEX Settlement & Payout Engine. It ensures that funds and licenses are transferred only after compliance verification, dispute clearance, and DAO-governed rules are satisfied.
2. Core Functions
- Escrow Management: Secure custody of buyer funds and license tokens until transaction completion.
- Payout Orchestration: Automatic disbursement of funds to sellers upon verified completion.
- Partial Release Handling: Supports partial payouts in milestone-based agreements.
- Multi-Currency Support: Handles payouts in stablecoins, native tokens, or wrapped assets.
- Fee Deduction Logic: DAO-configurable marketplace and compliance fees deducted on settlement.
3. Settlement Lifecycle
- Trigger: Compliance engine signals that trade conditions are met.
- Validation: Confirm ZKP proof validity, AI/ML score thresholds, and no active disputes.
- Release: Transfer license token to buyer and payout funds to seller.
- Fee Allocation: Marketplace and DAO treasury receive configured percentages.
- Event Logging: On-chain settlement event emitted with off-chain IPFS receipt.
4. Data Structures
- Escrow Record:
{
"escrow_id": "esc-987",
"order_id": "ord-789",
"buyer": "0xabc...",
"seller": "0xdef...",
"amount": "500 USDC",
"currency": "USDC",
"status": "locked"
}
- Payout Instruction:
{
"to": "0xdef...",
"amount": "485 USDC",
"fee_breakdown": {
"market_fee": "10 USDC",
"dao_fee": "5 USDC"
}
}
5. Security & Compliance
- Reentrancy Protection: Settlement functions wrapped with nonReentrant modifiers.
- Multi-Signature Approval: High-value settlements require DAO multisig sign-off.
- Immutable Audit Trail: All settlements logged on-chain and backed up via decentralized storage.
- Sanctions Blocking: Final verification step before payout ensures no sanctioned entity receives funds.
6. AI/ML Integration
- FraudGuard Final Scan: Runs Isolation Forest anomaly checks before fund release.
- Dynamic Risk Scoring: Payouts adjusted or held based on updated AegisScore.
7. Developer Notes
- Languages: Solidity (EVM) primary; Rust (Substrate) optional.
- External Integrations: Stablecoin contract interfaces, oracle feeds for FX rates.
- Code Example:
function releaseEscrow(uint256 escrowId, bytes memory proof) public nonReentrant {
require(validateProof(proof), "Invalid ZK proof");
require(checkRiskScore(escrowId) >= minThreshold, "Risk too high");
_transferLicense(escrowId);
_payoutSeller(escrowId);
emit EscrowReleased(escrowId);
}
This engine ensures trust-minimized, transparent, and fully compliant settlement and payout processes for the CHLOM License Exchange.