> ## Documentation Index
> Fetch the complete documentation index at: https://cobo.com/payments/llms.txt
> Use this file to discover all available pages before exploring further.

# Settlement Network

Settlement Network is a Cobo Payment capability that lets a Client settle funds with Liquidity Providers (LPs) through settlement rooms. Settlement execution uses automatic DVP (delivery-versus-payment), so the agreed settlement can be completed and reflected in your Payment account without a separate payout workflow.

Use Settlement Network to coordinate settlement inquiries, RFQ communication, settlement contracts, approvals, and final settlement results in one Portal workflow.

## Roles

* **Client**: Initiates settlement inquiries, joins settlement rooms, reviews settlement terms, and completes the required Cobo Guard approval or signature.
* **LP (Liquidity Provider)**: Responds to RFQ discussions, creates settlement contracts, and participates in the settlement room until the transaction is completed or terminated.

Only **Payment Admin** and **Admin** roles can operate Settlement Network workflows. **Payment Member** has view-only access. For role details, see [Roles and permissions](/payments/en/guides/roles-and-permissions).

## Prerequisites

Before using Settlement Network, make sure:

* Your organization is onboarded to Settlement Network.
* You have a **Payment Admin** or **Admin** role for operations, or **Payment Member** for view-only access.
* The relevant Payment account is funded for the intended settlement.

## Portal operation paths

1. Log in to Cobo Portal [development environment](https://portal.dev.cobo.com/login) or [production environment](https://portal.cobo.com/login).
2. In the left navigation bar, click **Apps**, then click the **Payments** card to launch the App.
3. In the App's left navigation bar, click **Settlement Network**.

Settlement Network contains the following sub-areas:

* **Network Members**: View Clients and LPs that are available in the network.
* **Settlement Rooms**: Track settlement inquiries, RFQ communication, settlement rooms, and room outcomes.
* **Contract Management**: Review settlement contracts created by LPs and complete the required Cobo Guard approval or signature.

## Settlement workflow

1. **Client starts an inquiry**: A Client starts a settlement inquiry from Settlement Network.
2. **Client and LP complete the RFQ discussion**: The Client and LP coordinate request-for-quote (RFQ) details through the Telegram RFQ flow.
3. **Settlement room is created**: After the RFQ discussion, a settlement room tracks the transaction lifecycle for the Client and LP.
4. **LP creates the settlement contract**: The LP creates the settlement contract in **Contract Management** for the agreed settlement.
5. **Client approves or signs with Cobo Guard**: The Client reviews the contract and completes the required Cobo Guard approval or signature.
6. **Automatic DVP executes settlement**: After the required approval or signature is complete, Settlement Network executes automatic DVP for the transaction.
7. **Room reaches an outcome**: The room is marked **Completed** when settlement succeeds, or **Terminated** when the settlement does not proceed.

The settlement room is the operational record for the transaction. Use it to follow the inquiry, RFQ result, contract status, approval progress, DVP execution, and final outcome.

## Balance and report impact

When a Settlement Network transaction settles funds in your Payment account, it produces a balance change with the `source_type` value `SettlementNetwork`.

To review these balance changes, generate a `BalanceChange` report and filter on the `SettlementNetwork` `source_type`. See [Reports](/payments/en/guides/reports) for exported fields and the full `source_type` reference, and [Amounts and balances](/payments/en/guides/amounts-and-balances) for how Payment balances are structured.

## Webhook touchpoints

Cobo emits the following webhook events for Settlement Network transactions:

* `payment.transaction.settlement_network.created`: emitted when a Settlement Network transaction is created.
* `payment.transaction.settlement_network.completed`: emitted when a Settlement Network transaction is completed. On completion, the settled funds are reflected in your Payment account balance with the `SettlementNetwork` `source_type`.

Both events carry transaction-level payload fields. For the shared payload structure and delivery behavior, see [Events and status](/payments/en/guides/status-and-events).

## Troubleshooting

* **Settlement room is waiting for the LP contract**: Open **Settlement Network** > **Settlement Rooms** to confirm the room, then use **Contract Management** to check whether the LP has created the settlement contract.
* **Cobo Guard approval or signature is pending**: Open **Settlement Network** > **Contract Management** and complete the required Cobo Guard action with an authorized operator.
* **Settlement is not reflected in the balance yet**: Check whether the settlement room has reached **Completed**. After completion, generate a `BalanceChange` report and filter on `SettlementNetwork`.
* **Room is terminated**: Open **Settlement Network** > **Settlement Rooms** to review the room outcome and start a new inquiry if you need to continue settlement with an LP.

## Related pages

* [Amounts and balances](/payments/en/guides/amounts-and-balances)
* [Crypto payouts](/payments/en/guides/crypto-payouts)
* [Destinations](/payments/en/guides/destinations)
* [Reports](/payments/en/guides/reports)
* [Events and status](/payments/en/guides/status-and-events)