Delivery Vs Payment Models

Delivery vs Payment Models are settlement systems where the delivery of an asset is conditional upon the simultaneous payment of the purchase price. This structure ensures that no party loses their asset without receiving the corresponding value, effectively eliminating settlement risk.

In the blockchain space, this is implemented through atomic transactions that bundle both legs of the trade into a single execution block. It is a critical feature for decentralized derivatives, as it guarantees that collateral is transferred only when the trade is valid.

By enforcing this linkage, the system prevents the possibility of a "broken" trade where only one side is fulfilled. It is the gold standard for secure, efficient asset settlement.