Settlement contracts
How ordered settlement batches preserve balanced financial effects on Canton.
From committed fills to balanced effects
Settlement groups eligible committed effects into an ordered batch. Each batch carries a sequence range, transfers, expected per-account changes and the evidence needed to connect it to execution history. Off-chain netting reduces settlement work while preserving the financial result.
Daml settlement contracts verify that transfers match the expected account changes and that effects balance for each asset. Before updating ledger state, they also check predecessor evidence and require the sequence to advance. Query views reflect these outcomes; they do not replace ledger validation.
Canton settlement model
Canton settlement model
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An ordered settlement batch connects off-chain execution to validated ledger effects.
Balanced effects. Transfers must agree with the expected account changes, and the net effects must balance for each asset.
Ordered history. Predecessor evidence must match, and the incoming sequence range must advance beyond the previously settled range.
Confirmed results. Successful application updates ledger balances and records the settled batch. Query services can then expose the confirmed result.
Preserve identity through settlement retries
A submission can fail before it is sent, succeed while its response is lost, or remain unresolved while confirmation is pending. Settlement preserves the batch identity and its evidence throughout recovery so that a retry can be reconciled with the original submission.
Recorded submission intent supports retry and recovery. Confirmed Canton evidence establishes settlement finality. An order’s earlier off-chain acknowledgement remains a separate event.
Use product-level settlement status
Use the documented account, funding and settlement status exposed by the product API. Trading applications do not need to construct Daml contracts or manage ledger parties. Deposits and withdrawals follow their documented product workflows, including owner approval where required.
Canton’s native selective disclosure governs access to collateral and settlement transaction details. Contract roles and permissions determine which views participants and their validator services receive. This complements the product’s private account views and public order-book data. See Privacy and market transparency.