From issuing a settlement token to redeeming it: the lifecycle of a single deal, multilateral netting and two settlement modes. dCLS only executes the FX conversion at a pre-agreed rate and takes no part in the underlying trade.
Seven steps from issuing a settlement token to redemption. The parties agree the rate outside the system — dCLS guarantees only simultaneity and finality of execution.
Multilateral netting collapses many offsetting obligations into a few net positions. Below is an anonymised example: five gross transfers compress into three net ones.
Gross obligations (5)
Net after netting (3)
The example is indicative and illustrative. The actual compression depends on the structure and balance of offsetting flows in a given window.
The same settlement runs in two modes. The participant picks the mode that fits their trust profile.
Settlement runs in the operator's secure ledger. Higher speed and throughput; settlement relies on trust in the operator and its procedures.
Settlement executes in a smart contract on Ethereum. Public verification, censorship resistance and an immutable audit trail instead of trust in a single party.
The modes are not mutually exclusive: off-chain provides speed for everyday flow, on-chain provides independent verifiability for material settlements.
Priority determines the order in which an instruction enters the settlement window — not its cost. Urgent instructions execute ahead of deferred ones.
The instruction is included in the nearest settlement window first.
Standard order: the instruction executes in the scheduled window.
The instruction waits for a fuller window — which improves the conditions for netting.
Priority affects only the order of execution and does not change the fee.