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NetFold Docs

Business settlement on USDG

Product usage, protocol architecture, safety properties, and verified settlement evidence for NetFold on Arbitrum Sepolia.

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Contents

Introduction

A business settlement workspace for mutually approved obligations.

NetFold is a business settlement workspace for mutually approved USDG obligations on Arbitrum. It calculates final net positions and releases them only after complete coverage.

  1. 01Record
  2. 02Accept
  3. 03Net
  4. 04Cover
  5. 05Settle

How it works

The 100 / 60 / 40 example

Studio owes Auditor 100 USDG. Auditor owes Infrastructure 60 USDG. Infrastructure owes Studio 40 USDG. NetFold offsets what each party owes and receives.

Studio Auditor100 USDG
Auditor Infrastructure60 USDG
Infrastructure Studio40 USDG
Gross
200 USDG
Required liquidity
60 USDG
Compression
70%

This is 70% gross-to-net liquidity compression. It is not a claim of 70% fewer ERC-20 transactions.

Using NetFold

Actions follow roles and onchain state.

Creator

Create the run, add participants, propose obligations, and close the fully accepted batch.

Payer

Review the pending obligation and explicitly accept only the amount assigned to your wallet.

Net debtor

Approve exactly the finalized USDG requirement, then fund the entire residual debit.

Any wallet

Settle a fully covered run once total funded equals the final total net debit.

Expired run

Anyone can expire an eligible closed run; each funded debtor claims its own refund.

How to test

Review evidence or execute the product.

Quick review

No wallet required

Inspect canonical Run #001, the proof page, and the failure evidence.

Full product

Execute a real Sepolia run

Connect a wallet, create a run, invite counterparties, accept, close, fund the residual, and settle.

Arbitrum Sepolia ETH is required for gas; canonical Paxos test USDG is required only for net debtors. Test tokens have no value, and faucet availability is not guaranteed.

Architecture

Public state, user-signed transactions.

01Browser / Wallet
02NetFoldClearing
03Canonical Paxos test USDG
04Arbitrum Sepolia

There is no database, custodial signer, hidden relayer, or private backend controlling settlement.

Safety properties

Enforced boundaries, not an audit claim.

  • Named-debtor acceptance
  • Maximum 8 participants and 32 obligations
  • Immutable closed batches
  • Exact residual funding
  • Complete coverage before settlement
  • Atomic settlement
  • No double settlement
  • Expiry and debtor refund path
  • Reentrancy protection

NetFold is unaudited. Passing tests and verified runs are engineering evidence, not a security audit.

Canonical protocol proof

Run #001

200 → 60 → 70%

Gross obligations · required liquidity · compression

SettledInspect deep proof
Production frontend acceptance

Run #002

20 → 6 → 70%

Gross obligations · required liquidity · compression

SettledSettlement transaction

Created and operated through the deployed public application using Alice, Bob, and Carol wallets.

Limitations

Testnet product, explicit scope.

  • Arbitrum Sepolia only
  • Test tokens have no value
  • Unaudited
  • No legal-netting opinion
  • No credit
  • No default mutualization
  • No KYC/KYB
  • One settlement asset
  • Maximum 8 participants
  • Maximum 32 obligations
  • Public-RPC event discovery without an indexer

Roadmap

Product horizons

Now

USDG business settlement workspace

Next

  • Recurring clearing windows
  • Business/team workspaces
  • Accounting/treasury integrations

Founder House

Issuer Rails Unimplemented

  • Branded business settlement tokens
  • 1:1 USDG backing
  • Reserve verification
  • Redemption into USDG
  • Multi-issuer USDG clearing

All Issuer Rails functionality is unimplemented roadmap scope. NetFold contains no stablecoin issuance contracts.