RWA Settlement Flow

Overview

RWA (Real-World Asset) settlement enables off-chain service execution with on-chain payment settlement. Services register with SLA terms, agents request execution, providers submit cryptographic proofs, and payments are released or refunded based on SLA compliance. Key Insight: RWAs in RelayCore are not tokenized assets—they are processes that agents settle with provable outcomes.

Complete Settlement Flow

1. Service Registration with SLA

Provider registers an RWA service with explicit SLA terms:

import { getRWASettlementAgent } from '@relaycore/sdk';

const rwaAgent = getRWASettlementAgent();

const serviceId = await rwaAgent.registerService({
  name: 'KYC Verification Service',
  serviceType: 'kyc_verification',
  description: 'Identity verification with document attestation',
  provider: '0x742d35Cc6634C0532925a3b844Bc9e7595f0bEb',
  endpoint: 'https://api.kyc-service.com/verify',
  pricePerCall: '5.00', // 5 USDC
  sla: {
    maxLatencyMs: 30000, // 30 seconds max
    requiredFields: ['documentHash', 'verificationStatus', 'timestamp'],
    proofFormat: 'signed',
    refundConditions: ['timeout', 'invalid_proof', 'missing_fields'],
    validityPeriodSeconds: 300 // 5 minutes
  },
  verificationMethod: 'signature'
});

SLA Terms Breakdown:

maxLatencyMs: Maximum time from request to proof submission
requiredFields: Fields that must be present in proof result
proofFormat: 'json' (basic), 'signed' (EIP-191), or 'hashed' (keccak256)
refundConditions: Conditions that trigger automatic refund
validityPeriodSeconds: How long proof remains valid

2. Agent Requests Execution

Agent requests off-chain execution with escrow-backed payment:

const request = await rwaAgent.requestExecution(
  serviceId,
  sessionId, // Escrow session with funds
  agentAddress,
  {
    documentId: 'passport_12345',
    userId: 'user_abc',
    verificationType: 'identity'
  }
);

console.log('Request ID:', request.requestId);
console.log('Status:', request.status); // 'pending' or 'rejected'

What Happens:

System checks escrow session has sufficient funds
If funds available: creates execution request in rwa_execution_requests table
If insufficient: returns rejected status
Funds remain locked in escrow until settlement

3. Provider Executes Off-Chain

Provider performs real-world service (KYC check, shipping verification, etc.):

// Provider's backend service
async function handleKYCRequest(requestId: string, input: any) {
  // Perform actual KYC verification
  const verification = await verifyIdentityDocument(input.documentId);
  
  // Generate proof
  const proof = {
    serviceId,
    requestId,
    timestamp: Date.now(),
    result: {
      documentHash: verification.hash,
      verificationStatus: verification.status, // 'verified' | 'rejected'
      timestamp: verification.completedAt,
      confidence: verification.confidence
    },
    providerAddress: '0x742d35Cc6634C0532925a3b844Bc9e7595f0bEb'
  };
  
  // Sign proof
  proof.signature = await wallet.signMessage(JSON.stringify({
    requestId: proof.requestId,
    timestamp: proof.timestamp,
    result: proof.result
  }));
  
  return proof;
}

4. Provider Submits Proof

Provider submits cryptographic proof for verification:

const verification = await rwaAgent.submitProof({
  serviceId,
  requestId: request.requestId,
  timestamp: Date.now(),
  result: {
    documentHash: '0xabc123...',
    verificationStatus: 'verified',
    timestamp: 1706000000,
    confidence: 0.95
  },
  signature: '0x1a2b3c...',
  providerAddress: '0x742d35Cc6634C0532925a3b844Bc9e7595f0bEb'
});

console.log('Proof valid:', verification.valid);
console.log('SLA metrics:', verification.slaMetrics);

Verification Response:

{
  "valid": true,
  "slaMetrics": {
    "latencyMs": 12500,
    "fieldsPresent": ["documentHash", "verificationStatus", "timestamp"],
    "fieldsMissing": [],
    "proofFormatValid": true,
    "withinValidity": true
  }
}

5. System Verifies SLA Compliance

RelayCore automatically verifies proof against SLA terms:

// From: src/services/rwa/rwa-settlement-agent.ts
private verifySLA(proof: ExecutionProof, sla: SLATerms, requestedAt: string) {
  const latencyMs = proof.timestamp - new Date(requestedAt).getTime();
  
  // Check latency
  const latencyOk = latencyMs <= sla.maxLatencyMs;
  
  // Check required fields
  const resultKeys = Object.keys(proof.result);
  const fieldsMissing = sla.requiredFields.filter(f => !resultKeys.includes(f));
  const fieldsOk = fieldsMissing.length === 0;
  
  // Check proof format
  let proofFormatValid = false;
  if (sla.proofFormat === 'signed') {
    const message = JSON.stringify({
      requestId: proof.requestId,
      timestamp: proof.timestamp,
      result: proof.result
    });
    const recoveredAddress = ethers.verifyMessage(message, proof.signature);
    proofFormatValid = recoveredAddress.toLowerCase() === proof.providerAddress.toLowerCase();
  }
  
  // Check validity period
  const withinValidity = (Date.now() - proof.timestamp) < (sla.validityPeriodSeconds * 1000);
  
  return {
    valid: latencyOk && fieldsOk && proofFormatValid && withinValidity,
    slaMetrics: { latencyMs, fieldsPresent, fieldsMissing, proofFormatValid, withinValidity }
  };
}

SLA Verification Checks:

Latency: latencyMs <= maxLatencyMs
Fields: All requiredFields present in proof.result
Signature: EIP-191 signature verifies to providerAddress
Validity: Proof submitted within validityPeriodSeconds

6. Settlement

System settles based on SLA verification:

const settlement = await rwaAgent.settle(request.requestId);

if (settlement.success) {
  console.log('Payment released to provider');
  console.log('Amount:', settlement.payment.amount);
  console.log('TX Hash:', settlement.payment.txHash);
} else {
  console.log('Payment refunded to requester');
  console.log('Reason:', settlement.refund.reason);
  console.log('Amount:', settlement.refund.amount);
}

If SLA Met (proof valid):

// Release payment to provider
await escrow.releasePayment(
  sessionId,
  providerAddress,
  pricePerCall,
  requestId
);

// Update request status
await supabase
  .from('rwa_execution_requests')
  .update({ status: 'settled' })
  .eq('request_id', requestId);

If SLA Violated (proof invalid):

// Refund to session owner
await escrow.refund(sessionId);

// Update request status
await supabase
  .from('rwa_execution_requests')
  .update({ status: 'refunded' })
  .eq('request_id', requestId);

RWA Service Types

Type	Description	Typical SLA
`compliance_check`	KYC/AML verification	30s latency, signed proof
`market_report`	Real-time market data	10s latency, hashed proof
`trade_confirmation`	Trade execution proof	60s latency, signed proof
`settlement_reconciliation`	Payment reconciliation	120s latency, signed proof
`price_verification`	Oracle price attestation	5s latency, signed proof
`kyc_verification`	Identity verification	30s latency, signed proof
`execution_proof`	Service execution proof	60s latency, signed proof
`data_attestation`	Data integrity proof	15s latency, hashed proof

State Machine Integration

RWA settlement can also use the state machine for complex multi-step processes:

import { rwaStateMachineService, RWAState, AgentRole } from '@relaycore/sdk';

// 1. Create state machine
const stateMachine = await rwaStateMachineService.createStateMachine(
  'property_verification_123',
  {
    propertyId: 'prop_456',
    address: '123 Main St',
    owner: '0xOwner...'
  }
);

// 2. Transition: created → verified
const verifyResult = await rwaStateMachineService.transition({
  rwaId: 'property_verification_123',
  toState: RWAState.VERIFIED,
  agentAddress: '0xVerifier...',
  agentRole: AgentRole.VERIFIER,
  sessionId: 1,
  proof: {
    documentHash: '0xabc...',
    verificationStatus: 'verified'
  }
});

// 3. Transition: verified → escrowed
const escrowResult = await rwaStateMachineService.transition({
  rwaId: 'property_verification_123',
  toState: RWAState.ESCROWED,
  agentAddress: '0xEscrowManager...',
  agentRole: AgentRole.ESCROW_MANAGER,
  sessionId: 1
});

// 4. Continue through states: in_process → fulfilled → settled

State Machine States:

CREATED → VERIFIED → ESCROWED → IN_PROCESS → FULFILLED → SETTLED
Each transition requires specific AgentRole
Each transition costs USDC (deducted from session)
Invalid transitions are rejected

Transition Costs:

const TRANSITION_COSTS = {
  'created→verified': '0.10',
  'verified→escrowed': '0.50',
  'escrowed→in_process': '0.20',
  'in_process→fulfilled': '0.30',
  'fulfilled→settled': '1.00'
};

Complete Example: KYC Verification

// 1. Provider registers KYC service
const serviceId = await rwaAgent.registerService({
  name: 'KYC Pro',
  serviceType: 'kyc_verification',
  provider: '0xProvider...',
  endpoint: 'https://api.kycpro.com/verify',
  pricePerCall: '5.00',
  sla: {
    maxLatencyMs: 30000,
    requiredFields: ['documentHash', 'verificationStatus', 'timestamp'],
    proofFormat: 'signed',
    refundConditions: ['timeout', 'invalid_proof'],
    validityPeriodSeconds: 300
  },
  verificationMethod: 'signature'
});

// 2. Agent creates session with budget
const session = await createSession({
  maxSpend: '100.00',
  duration: 86400
});

// 3. Agent requests KYC verification
const request = await rwaAgent.requestExecution(
  serviceId,
  session.session_id,
  '0xAgent...',
  {
    documentId: 'passport_12345',
    userId: 'user_abc'
  }
);

// 4. Provider executes KYC (off-chain)
const kycResult = await performKYCVerification('passport_12345');

// 5. Provider submits proof
const proof = {
  serviceId,
  requestId: request.requestId,
  timestamp: Date.now(),
  result: {
    documentHash: kycResult.hash,
    verificationStatus: kycResult.status,
    timestamp: kycResult.completedAt
  },
  signature: await wallet.signMessage(JSON.stringify({
    requestId: request.requestId,
    timestamp: Date.now(),
    result: kycResult
  })),
  providerAddress: '0xProvider...'
};

const verification = await rwaAgent.submitProof(proof);

// 6. System settles automatically
const settlement = await rwaAgent.settle(request.requestId);

if (settlement.success) {
  console.log('KYC verified and provider paid');
  console.log('Payment TX:', settlement.payment.txHash);
} else {
  console.log('KYC failed, requester refunded');
  console.log('Reason:', settlement.refund.reason);
}

SLA Violation Scenarios

Scenario 1: Latency Exceeded

// SLA: maxLatencyMs = 30000 (30 seconds)
// Actual: latencyMs = 45000 (45 seconds)

const verification = await rwaAgent.submitProof(proof);
// Returns: { valid: false, reason: "Latency 45000ms exceeds SLA 30000ms" }

const settlement = await rwaAgent.settle(requestId);
// Refunds to requester

Scenario 2: Missing Required Fields

// SLA: requiredFields = ['documentHash', 'verificationStatus', 'timestamp']
// Proof: result = { documentHash: '0x...', verificationStatus: 'verified' }
// Missing: 'timestamp'

const verification = await rwaAgent.submitProof(proof);
// Returns: { valid: false, reason: "Missing required fields: timestamp" }

Scenario 3: Invalid Signature

// Proof signature doesn't verify to providerAddress

const verification = await rwaAgent.submitProof(proof);
// Returns: { valid: false, reason: "Invalid proof format: expected signed" }

Scenario 4: Proof Expired

// SLA: validityPeriodSeconds = 300 (5 minutes)
// Proof submitted 10 minutes after execution

const verification = await rwaAgent.submitProof(proof);
// Returns: { valid: false, reason: "Proof expired" }

Database Schema

`rwa_execution_requests`

CREATE TABLE rwa_execution_requests (
  id SERIAL PRIMARY KEY,
  request_id TEXT UNIQUE NOT NULL,
  service_id TEXT NOT NULL,
  session_id INTEGER NOT NULL,
  agent_address TEXT NOT NULL,
  input JSONB NOT NULL,
  price TEXT NOT NULL,
  sla_terms JSONB NOT NULL,
  status TEXT NOT NULL, -- 'pending' | 'verified' | 'settled' | 'refunded' | 'failed'
  proof JSONB,
  verification JSONB,
  requested_at TIMESTAMPTZ NOT NULL,
  verified_at TIMESTAMPTZ,
  settled_at TIMESTAMPTZ
);

`rwa_state_machines`

CREATE TABLE rwa_state_machines (
  id SERIAL PRIMARY KEY,
  rwa_id TEXT UNIQUE NOT NULL,
  current_state TEXT NOT NULL,
  previous_state TEXT,
  metadata JSONB NOT NULL,
  created_at TIMESTAMPTZ NOT NULL,
  updated_at TIMESTAMPTZ NOT NULL
);

`rwa_state_transitions`

CREATE TABLE rwa_state_transitions (
  id SERIAL PRIMARY KEY,
  rwa_id TEXT NOT NULL,
  from_state TEXT NOT NULL,
  to_state TEXT NOT NULL,
  agent_address TEXT NOT NULL,
  agent_role TEXT NOT NULL,
  payment_hash TEXT NOT NULL,
  proof JSONB NOT NULL,
  transitioned_at TIMESTAMPTZ NOT NULL
);

Best Practices

1. Set Realistic SLA Terms

// ❌ Bad: Unrealistic latency
sla: {
  maxLatencyMs: 1000, // 1 second for KYC is impossible
  requiredFields: ['result']
}

// ✅ Good: Realistic latency with buffer
sla: {
  maxLatencyMs: 30000, // 30 seconds with 10s buffer
  requiredFields: ['documentHash', 'verificationStatus', 'timestamp'],
  validityPeriodSeconds: 300
}

2. Always Sign Proofs

// ❌ Bad: No proof
await rwaAgent.submitProof({
  serviceId,
  requestId,
  timestamp: Date.now(),
  result: { data: 'result' },
  providerAddress
});

// ✅ Good: Signed proof
const message = JSON.stringify({ requestId, timestamp, result });
const signature = await wallet.signMessage(message);

await rwaAgent.submitProof({
  serviceId,
  requestId,
  timestamp: Date.now(),
  result,
  signature,
  providerAddress
});

3. Handle Refunds Gracefully

const settlement = await rwaAgent.settle(requestId);

if (!settlement.success) {
  logger.warn('RWA settlement failed', {
    requestId,
    reason: settlement.refund.reason
  });
  
  // Notify user
  await notifyUser({
    type: 'rwa_refund',
    requestId,
    reason: settlement.refund.reason,
    amount: settlement.refund.amount
  });
}

Next Steps

RWA SDK

Build RWA services with SDK

Session Management

Use escrow sessions for RWA

x402 Protocol

Understanding payment flow

State Machine

Multi-step RWA processes

Getting Started

Core Concepts

Guides

Smart Contracts

CLI Reference

Deployment

Overview

Complete Settlement Flow

RWA Service Types

State Machine Integration

Complete Example: KYC Verification

SLA Violation Scenarios

Scenario 1: Latency Exceeded

Scenario 2: Missing Required Fields

Scenario 3: Invalid Signature

Scenario 4: Proof Expired

Database Schema

`rwa_execution_requests`

`rwa_state_machines`

`rwa_state_transitions`

Best Practices

1. Set Realistic SLA Terms

2. Always Sign Proofs

3. Handle Refunds Gracefully

Next Steps

RWA SDK

Session Management

x402 Protocol

State Machine

Getting Started

Core Concepts

Guides

Smart Contracts

CLI Reference

Deployment

​Overview

​Complete Settlement Flow

​RWA Service Types

​State Machine Integration

​Complete Example: KYC Verification

​SLA Violation Scenarios

​Scenario 1: Latency Exceeded

​Scenario 2: Missing Required Fields

​Scenario 3: Invalid Signature

​Scenario 4: Proof Expired

​Database Schema

​rwa_execution_requests

​rwa_state_machines

​rwa_state_transitions

​Best Practices

​1. Set Realistic SLA Terms

​2. Always Sign Proofs

​3. Handle Refunds Gracefully

​Next Steps

RWA SDK

Session Management

x402 Protocol

State Machine

Overview

Complete Settlement Flow

RWA Service Types

State Machine Integration

Complete Example: KYC Verification

SLA Violation Scenarios

Scenario 1: Latency Exceeded

Scenario 2: Missing Required Fields

Scenario 3: Invalid Signature

Scenario 4: Proof Expired

Database Schema

`rwa_execution_requests`

`rwa_state_machines`

`rwa_state_transitions`

Best Practices

1. Set Realistic SLA Terms

2. Always Sign Proofs

3. Handle Refunds Gracefully

Next Steps