Settlement patterns
A market needs more than a spot exchange of two assets. Real settlement is conditional:
delivery against payment, funds released only when an event is proven, positions that pay out
on a Bitcoin fact or on a signed price. Each pattern below is a way to build one of those
conditions from the same primitives — hashlocks, timelocks, CTV, CSFS, TX_CONFIRMED — so
that a market builder does not have to trust an intermediary to hold the funds in between.
| Pattern | The condition it settles |
|---|---|
| Delivery-versus-payment and OTC | both legs settle or neither does; size can stay hidden |
| Conditional escrow | execute on a proven event, refund on timeout, no agent holds the principal |
| Hedging on Bitcoin facts | a payout selected by Bitcoin difficulty read inside consensus |
| Fixed-term value positions | a bilateral, collateralised payoff on a signed reference price |
These are compositions of primitives that any market builder can assemble, not shipped products. Each page lists its primitives; the covenant surface is documented in Script & opcodes.
See also: Native BTC ⇄ M1 · Build your first application