Introduction

The Copper Network is a network that enables counterparties to create and execute bilateral settlements or one-way transfers while minimizing counterparty risk on the Copper Platform. Copper Network supports both crypto-to-crypto settlements and fiat-linked settlements.

The following settlement order types are currently supported by the Copper Network:

• Payment vs Payment (PvP): PvP settlement orders require both counterparties to settle their legs simultaneously.

  The funds are reserved/prefunded on both sides before settlement, at the point of acceptance. A delivery occurs only if another delivery has occurred (and vice versa).

• Free of Payment (FoP): In FoP settlement orders, the settlement legs are transferred independently of each other.

  There is no fund reservation at settlement acceptance; each counterparty needs to explicitly trigger the transfer of funds.

  The FoP order type bears higher risk as there is no guarantee on the platform that, once one side has settled, the other side will also settle. The option is only available to those who signed the Terms and Conditions for FoP.

The status of active Copper Network settlements and transfers can be monitored and actioned for approval or cancellation from the order response.