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🔄 Transfers

The Transfer path allows a borrower to move a credit facility (or collateral) to or from a third-party marketplace. This path is encoded as a spend condition that requires three-way authorization: the borrower, the Decentralised Custody Network (DCN), and the third-party marketplace (or its designated signer).

The exact on-chain encoding and coordination flows are not yet finalised; what follows is a generic description of the intended process.

Transfer flow (generic)

  1. Borrower request — The borrower initiates a transfer (e.g. moving the loan out of Surge’s credit market into another marketplace, or the reverse).
  2. Coordination — The Execution State Machine (or a coordination layer) validates the request and prepares the transfer instruction. The third-party marketplace is notified and confirms willingness to accept (or release) the position.
  3. Multi-party signing — The required parties participate in a signing round:
    • Borrower — Authorises the move of their collateral or facility.
    • DCN — Authorises the spend from the dVault (or the release of Surge’s claim) in line with the transfer terms.
    • Third-party marketplace — Authorises acceptance (or release) of the position on their side.
  4. Settlement — Once all required signatures are collected, the Bitcoin transaction (if any) is broadcast and the execution-layer state is updated so both systems reflect the new ownership or location of the facility.

Settlement details (e.g. PSBT construction, messaging between Surge and the third party) will be defined as the feature is built out.

Key points

  • Three-way coordination: A transfer is only valid when the borrower, the DCN, and the third-party marketplace have all authorised it. No single party can move the facility unilaterally.
  • Design in progress: Specific flows, APIs, and on-chain script details are still to be defined. This page will be updated as the transfer path is implemented.