> For the complete documentation index, see [llms.txt](https://docs.bextree.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bextree.com/getting-started/settlement-lifecycle.md).

# Settlement Lifecycle

Settlement is the exchange of a specific asset for a specific payment between a specific seller and buyer. It only begins once an auction has ended with a winner.

The mechanics depend on the asset's **custody model** — whether Bextree could take custody before the auction began.

## Pre-custodied (LP positions: Orca, Raydium, Meteora DAMM v2)

The asset has been sitting in Bextree's on-chain vault since before the auction went live.

1. The winning buyer deposits the full winning bid (USDC) into escrow.
2. The settlement program executes the swap in a single step: the LP position transfers to the buyer, and payment (minus the platform fee) transfers to the seller.

There is no settlement window and no bond, because there is no seller action left to wait for — the seller performed at listing time.

## Post-custodied (Streamflow vesting & locks)

Only the current recipient of a Streamflow contract can transfer it, so the seller still holds the asset when the auction ends. Trust is enforced by the **settlement bond** instead:

1. At listing time, the seller posted a refundable bond of **5% of the reserve price**.
2. The winning buyer deposits the full winning bid (USDC) into escrow. This starts a **24-hour settlement window**.
3. The seller signs the Streamflow transfer changing the contract's recipient to the buyer's wallet.
4. Bextree verifies the transfer **on-chain** — completion is confirmed against chain state, not self-reported.
5. On verification: the seller is paid from escrow (minus the platform fee) and the bond is refunded in full.

## If the seller doesn't deliver

* The buyer's escrowed payment is **refunded in full, automatically** — no dispute process, no support ticket.
* The seller's bond is **forfeited** and split **70% to Bextree / 30% to the buyer**, paid on top of the refund as compensation for the trade that didn't happen.

The platform's share reflects the real operational cost of running escrow, verification, and the refund workflow; the buyer's share compensates lost time and opportunity.