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5. Trade Protocol (On- and Off-Ramp)

We formalize the order lifecycle as a state machine with timeouts:

States: OPEN → MATCHED → FUNDED → CONFIRMED → SETTLED | DISPUTED → RESOLVED | EXPIRED

Common Parameters (governed):

  • T_match (max time to accept a match), T_fiat (max time to make fiat transfer), T_confirm (confirmation window), T_dispute (challenge window).
  • B_bond_user, B_bond_merchant (optional performance bonds/slashing weights by reputation tier and payment rail risk class).
  • min_amount, max_amount per rail/region; fee schedules; quote expiry windows.

5.1 On-Ramp (Fiat → USDC on Base; expanding to Solana)​

  1. Open: User opens BUY order with amount & rail.
  2. Match: Protocol assigns a merchant on-chain based on staked USDC. Refundable bonds may lock.
  3. Fund Fiat: User pays fiat to provided account within T_fiat.
  4. Merchant Ack: Merchant confirms receipt of fiat payment.
  5. Settle: Contract releases USDC to user; fees assessed; bonds unlocked.
  6. Dispute: If conflict, parties submit evidence; authorized admins issue on-chain verdict.

5.2 Off-Ramp (USDC on Base → Fiat; expanding to Solana)​

  1. Open: User opens SELL order; transfers USDC to escrowless settlement adapter (contract holds or streams atomically per design).
  2. Match: Merchant accepts and posts quote/bond.
  3. Fund Crypto: User's USDC is locked for settlement.
  4. Merchant Pays Fiat: Merchant pays fiat and confirms completion; or user challenges.
  5. Settle: Contract releases USDC to merchant; fees assessed; bonds unlocked.
  6. Dispute: If conflict, parties submit evidence; authorized admins issue on-chain verdict.

5.3 Payment-Rail Risk Classes​

Rails differ (instant/irreversible vs reversible/chargeback-prone). The protocol maps rails to bond multipliers, confirmation requirements, and longer/shorter dispute windows.