# Trade Life Cycle

The `Optimex Protocol` enables secure cross-chain asset transfers through a structured, multi-step trade process that includes user deposits, market maker (`PMM`) execution, and final settlement. Each trade progresses through clearly defined stages and is continuously monitored by a decentralized Multi-Party Computation (`MPC`) network, ensuring consistency, validation, and reliable failure recovery.

<figure><img src="/files/QXg3m9QNoOc8Lg3g7FnY" alt=""><figcaption><p>Optimistic Swap - Trade Life Cycle</p></figcaption></figure>

### <mark style="color:orange;">Trade Completion States</mark>

Each trade concludes in one of two final states:

* `Completed` – The trade successfully progresses through all required lifecycle stages and the recipient receives the intended asset.
* `Refunded` – The trade encounters an issue that prevents completion. The protocol safely returns funds to the user.

### <mark style="color:orange;">Successful Trade Lifecycle</mark>

A trade is considered `Completed` only when it successfully passes through the following sequential stages:

* `Trade Submitted` – The Solver submits initial trade data to the protocol.
* `Deposit Confirmed` – The MPC verifies that the user's deposit was received on the source chain.
* `PMM Selected` – A Professional Market Maker (PMM) is selected to fulfill the trade.
* `Payment Transferred` – The PMM sends the target asset to the user on the destination chain.
* `Payment Confirmed` – The MPC validates that the payment has been successfully completed.
* `Completed` – The trade is finalized and marked as successful, triggering settlement and releasing funds to the PMM.

### <mark style="color:orange;">Failure Detection and Handling</mark>

While the protocol is designed for high success rates, failures may occur at specific stages. The MPC plays a key role in proactively detecting and resolving failures.

#### 🔍 Deposit Failure Detection

* After trade submission, the MPC validates deposit details.
* If a mismatch or timeout occurs, the MPC can mark the trade as `Failure`.
* A trade marked as `Failure` is permanently halted and cannot proceed.
* After a grace period (`timeout`), the MPC finalizes the trade and triggers an automatic refund of the user’s funds.

#### 🔍 Payment Failure Detection

* The payment (`paymentTxId`) may be submitted by the Solver or PMM.
* The MPC verifies payment accuracy and consistency.
* If a problem is detected:
  * The trade is moved to a `WARNING` state.
  * The PMM is notified and may attempt to make another payment.
    * If successful, the trade returns to `Confirm Payment`.
    * If not, the `MPC` escalates the trade to `FAILURE` after the timeout period and initiates the refund process accordingly.

#### 🔍 Other Failure Scenarios

* For all other stages (e.g., `Select PMM`, `Make Payment`, `Warning`, `Confirm Settlement`), failure handling is only triggered after a timeout.
* The MPC monitors pending trades and moves them to `Failure` if they remain stalled.
* Refund handling follows the same policy based on the auto-refund setting.

> **⚠️ Note: Auto-refund is mandatory. However, in rare cases, the MPC may process the refund with a delay. Users can still manually claim refunds via the DApp interface after the timeout period if the refund hasn't been issued automatically.**


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