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A typical DvP order operation follows this flow:
  1. Buyer creates a DvP Proposal. One party (the proposer) creates a DvP proposal contract that describes the swap terms: what instruments and amounts will be delivered and what will be paid, plus key timing parameters (for example, allocation and settlement deadlines).
  2. Seller accepts the Proposal and forms the agreement.
    The counterparty accepts the proposal. This acceptance results in a DvP agreement (a DvP contract) between the buyer and seller under the same terms.
  3. Both Buyer and Seller allocate assets according to the terms.
    Both parties create the required token allocations for the instruments and amounts specified in the agreement. Allocations represent each party reserving/committing the assets needed for delivery vs payment.
  4. Settlement is done automatically when both sides have allocated their assets.
    Settlement completes automatically once all required allocations are in place. At that point, delivery and payment are executed together according to the DvP terms.
If any party fails to meet the contractual obligations and fulful their part of the contract, settlement fails, and the transaction rolls back. No assets move from one account to another.