Architecture

The FairFoundry Fabric consists of a settlement engine and a quality credential system, connected by an automated verification layer.

FairFoundry Fabric architecture: settlement contract, SVT credentials, oracle verification

Settlement Contract

Manages escrow, service orders, automated verification, credit ledger, and automatic payment release.

Quality Credential System

Non-transferable quality certificates issued on validated completion. Each credential is permanent, auditable proof of service delivery.

Verification Layer

Automated inspection of factory artifacts 24/7 against acceptance criteria, triggering settlement on verified completion.

Service lifecycle

Every manufacturing service progresses through a standardized lifecycle, each stage generating its own verified record.

EVT
Engineering Validation
DVT
Design Validation
PVT
Production Validation
MP
Mass Production
SUS
Sustaining

Order state machine

Requested
Accepted
Delivered
Validated
Settled
OEM creates MI accepts MI uploads Oracle attests Payment releases
State machine
Service order state transitions: Requested → Accepted → Delivered → Validated → Settled, with cancellation and dispute branches

Settlement timing

Verified completion triggers payment within hours. Disputes resolve in 96 hours via deterministic re-inspection.

Settlement timing
Settlement timing: 48-hour objection window, 96-hour dispute resolution
Payment pipeline
Payment pipeline: escrow lock, oracle attest, SVT mint, fee deduction, settlement release
Re-inspection
Deterministic re-inspection sequence: random sample, third-party arbitration, binding result

Core capabilities

Five capabilities that power the settlement pipeline.

Escrowed Settlements

OEM deposits funds into a neutral escrow account before work begins. Funds are automatically released upon successful verification. Eliminates payment disputes and factory cash flow risk.

Automated Verification

Fairbuild's verification layer monitors production artifacts 24/7 via direct API hooks to factory test stations. Equipment provenance — firmware hashes and bench IDs — is captured automatically to ensure data integrity.

Quality Certificates

Non-transferable quality certificates issued on validated completion. Each certificate carries permanent metadata: order ID, development stage, verifier identity, and timestamp. Certificates accumulate as a portable factory quality record.

Credit Ledger

Manufacturing partners can accumulate credits across orders instead of direct payment. Credits are redeemable on-demand, reducing cash flow friction for multi-order relationships.

Dispute Resolution & QA Incentives

48-Hour Objection Window
OEM has 48 hours after verification to raise objections. No objection means automatic settlement.

Deterministic Re-Inspection
Random sample selection that neither side controls. Rate-limited. Resolution within 96 hours.

Governance
ERS and pricing updates require multi-party approval with minimum 1-hour delay. All state changes are tamper-proof and auditable.

Built with rigor

61
Tests passing

Settlement happy paths, negatives, auth violations, escrow conservation, SVT monotonicity. Full suite runs in 0.15 seconds.

2
Smart contracts

Settlement engine and quality credential (SVT) system. Open source on Stellar Soroban. Independently auditable.

5
Lifecycle stages

EVT, DVT, PVT, MP, and Sustaining. Each stage generates its own verified credential, building a permanent quality record.

On-chain data model

Service requests, completion attestations, SVT credentials, and the governance timelock — all encoded directly in the contract.

Data model
Data model: ServiceRequest, ServiceOrder, CompletionAttestation, SVT, CreditLedger entities and their relationships
Governance timelock
Governance timelock: pricing or contract changes require multi-party approval and a minimum 1-hour delay

Contract API

Key public functions available on the settlement contract.

Function
Description
create_service_order
OEM creates a new service order with escrow deposit
accept_service_order
Manufacturing partner accepts the order
submit_artifacts
MI uploads production artifacts (tamper-proof commitment)
attest_completion
Verification layer validates and issues completion attestation
settle_service
Releases escrowed funds. Direct payment is callable by anyone (relayer-friendly). Credit-mode settlement requires factory authorization.
redeem_credits
Factory redeems accumulated credits for payment
cancel_service_order
OEM cancels before acceptance (escrow returned)
Recent hardening · May 2026

Three guard fixes shipped following an internal 3-way review: settle_service now requires factory auth for credit-mode settlement; init rejects re-initialization (AlreadyInitialized); the dispute path rejects late QA responses, zero-bps default-slash calls, and self-slash by the QA. 61 tests pass under the hardened guards. Contract is open source — read the diff on GitHub.

Usage scenarios

How Fairbuild integrates from first conversation to production settlement.

Scenario 1: New camera module program (EVT → MP)

Week 1–2
Scoping

OEM shares ERS document. Fairbuild encodes acceptance criteria (MTF thresholds, SFR specs, cosmetic limits) as verification logic. Factory confirms test data format and upload path.

Week 3
Integration

Fairbuild connects to factory's ATE logs (direct API or OEM database access). Verification logic tested against sample data. Both parties review the settlement terms encoded in the contract.

Week 4
First EVT order

OEM creates service order and deposits escrow. Factory accepts. EVT build proceeds. On completion, factory uploads test artifacts. Verification runs automatically.

Week 4 + 48hrs
First settlement

Verification passes. OEM doesn't object within 48 hours. Payment releases to factory. Quality credential issued. Total time from completion to payment: 2 days.

Months 2–12
DVT → PVT → MP

Each development stage creates new service orders with updated acceptance criteria. Same escrow-verify-settle cycle. Factory accumulates quality credentials across stages. OEM can engage different factories per stage.

Scenario 2: Quality dispute during PVT

Day 1
Factory completes PVT build, uploads artifacts

Automated verification passes — factory's test data meets the encoded acceptance criteria.

Day 1 + 36hrs
OEM objects

OEM's incoming inspection shows different MTF results. They raise an objection within the 48-hour window. Escrow is frozen. Dispute resolution fee deducted from both sides.

Day 2–3
Fairbuild arbitration (remote)

Fairbuild engineers review both test data sets remotely. In this case: the factory's test bench was calibrated, but the OEM's reference standard had drifted. Root cause identified without a site visit.

Day 4
Resolution

Factory work confirmed valid. Full payment released. OEM updates their reference standard. Acceptance criteria revised for future orders to account for measurement uncertainty budget. Total dispute time: 3 days (not 3 months).

Scenario 3: Multi-factory program

Q1
EVT with Factory A (Korea)

5 service orders, $150K total escrow. All verified and settled within 48 hours each. Factory A earns 5 quality credentials.

Q2
DVT with Factory B (Vietnam)

Different factory, same contract. OEM creates new service orders with DVT-specific acceptance criteria. Factory B uses different test equipment — Fairbuild reads the data regardless.

Q3–Q4
PVT and MP with Factory C (China)

Volume production. 50+ micro-settlements per quarter. Factory C accumulates credits and redeems monthly. Quality credentials build a verifiable track record across the full program.

End of year
OEM reviews supplier performance

All three factories have auditable quality credentials. OEM compares verified completion records — not slide decks — when planning next year's program. Factory C's 50+ credentials speak louder than a reference call.

Ready to integrate?

The FairFoundry Fabric is open source. Explore the contracts, run the test suite, and reach out to discuss integration.