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🔄 Transfers

Transfers allow a borrower to move a credit position to or from a third-party marketplace through a coordinated process across contracts and signer policy.

There is no separate on-chain "Transfer leaf" in the Taproot script tree. Transfer settlement is handled through cooperative authorization and state transitions.

Transfer Flow

  1. Borrower request - borrower initiates transfer intent.
  2. Coordination Layer validation - policy checks validate the transfer terms and destination market conditions.
  3. Counterparty acceptance - third-party marketplace accepts transfer terms.
  4. Cooperative settlement - required approvals are collected, Bitcoin spend and contract updates are executed, and ownership/state are synchronized.

Settlement details are implementation-specific and evolve as integrations are finalized.

Key points

  • Cooperative authorization: Transfers require borrower consent, DCN policy compliance, and external market acceptance.
  • No dedicated Transfer script leaf: Transfer behavior is coordinated at the application and contract layers.