> For the complete documentation index, see [llms.txt](https://tradesman.gitbook.io/lv8r-labs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tradesman.gitbook.io/lv8r-labs/shared/proof-settlement.md).

# Proof-Triggered Settlement

{% hint style="warning" %}
**No proof, no payment.** Cryptographic proofs from the LV8R Labs stack trigger payment disbursement through MicroPay rails. No manual approval bottleneck.
{% endhint %}

## How It Works

| Stage                       | System    | What Happens                                                                                 |
| --------------------------- | --------- | -------------------------------------------------------------------------------------------- |
| **1. Work Completed**       | PPCS      | Contractor marks milestone complete with evidence (photos, inspection report, material cert) |
| **2. Proof Generated**      | LV8R Labs | Evidence cryptographically anchored — who attested, when, what they verified                 |
| **3. Verification**         | LV8R Labs | Proof validated against project requirements and credential status                           |
| **4. Settlement Triggered** | MicroPay  | USDC/EURDC disbursement released to contractor wallet                                        |
| **5. Audit Trail**          | Both      | Full provenance chain from work completion to payment                                        |

## Why Proof-Triggered?

Traditional construction payment flows depend on manual approval chains — project manager signs off, accounts payable processes, check cuts in 30-90 days. This creates:

* **Cash flow problems** for contractors waiting months for payment
* **Dispute risk** when approvals are verbal or undocumented
* **Fraud opportunity** when payment and verification are disconnected

{% hint style="success" %}
Proof-triggered settlement collapses this to: **verified work → automatic payment.** The proof is the approval.
{% endhint %}

## Requirements

| Requirement         | How It's Met                                                                    |
| ------------------- | ------------------------------------------------------------------------------- |
| Contractor identity | ADI credential via [tradesman-verify](/lv8r-labs/lv8r-labs/tradesman-verify.md) |
| Work verification   | Evidence anchored at point of completion via [VDCO](/lv8r-labs/guides/vdco.md)  |
| Payment rails       | [MicroPay](/lv8r-labs/micropay/micropay.md) USDC/EURDC infrastructure           |
| Compliance          | AML reporting, OFAC screening, FinCEN logs                                      |

→ [PPCS ProductionOS](/lv8r-labs/lv8r-labs/ppcs.md) · [Contractor Compliance](/lv8r-labs/shared/contractor-compliance.md) · [BIMHeroDAO + EURDC](/lv8r-labs/shared/bimhero-eurdc.md)


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