> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ryvo.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Settlement Modes Overview

> The three settlement paths in Ryvo and when to use each.

Ryvo exposes three settlement paths, each built on the previous one. All three settle into the same shared vault and the same participant balances. They differ only in how many channels and how many participants are settled together.

## The three modes at a glance

| Mode                                                      | Message format                | Instruction                | Best for                                              |
| --------------------------------------------------------- | ----------------------------- | -------------------------- | ----------------------------------------------------- |
| [Direct](/settlement-modes/direct-settlement)             | `ryvo-cmt-v5`                 | `settle_individual`        | One payer, one payee, one channel                     |
| [Bundle](/settlement-modes/bundle-settlement)             | Many `ryvo-cmt-v5`            | `settle_commitment_bundle` | One payee aggregating many payers                     |
| [Cooperative clearing](/settlement-modes/clearing-rounds) | `Ryvo-round` (BLS round body) | `settle_clearing_round`    | Several participants advancing many channels together |

Direct settlement is always available as a fallback, even when bundle or cooperative paths are used. See [Design principles](/thesis/design-principles#always-available-fallback-path) for why.

## Direct settlement

One signed `ryvo-cmt-v5` moves one channel forward. The payee submits it with `settle_individual`.

* **Signatures:** 1 (the channel's `authorized_signer`)
* **On-chain writes:** 1 channel, 2 participants
* **Coordination:** none
* **When to use:** the baseline path for any new integration

## Bundle settlement

The payee collects many `ryvo-cmt-v5` messages from many payers in the same token and settles them in one transaction with `settle_commitment_bundle`.

* **Signatures:** one per included channel (each payer signs independently)
* **On-chain writes:** N channels, N+1 participants
* **Coordination:** none between payers
* **When to use:** one provider with many paying clients

Bundle settlement is **not** multilateral netting. Each channel still settles independently; the bundle only reduces transaction count and per-transaction overhead.

## Cooperative clearing

Several participants sign one shared clearing-round message. `settle_clearing_round` advances every included channel in a single transaction. Channel state always moves to the signed cumulative target for each included lane.

* **Signatures:** one aggregate BLS signature over the shared round body
* **On-chain writes:** all included channels, plus participant-bucket balance updates
* **Coordination:** all participants must agree on and sign the same round
* **When to use:** a known group of participants with bidirectional payment flow

This is the densest settlement path. Cooperative rounds scale protocol-level settlement compression beyond any unilateral path.

## Choosing a mode

Start with direct settlement. Promote to bundle settlement when one payee is settling many payers in the same token. Promote to cooperative clearing when a known set of participants has mutual payment flow and is willing to coordinate.

You do not have to pick one. A real deployment can use all three simultaneously, with different relationships at different points on the coordination and density spectrum.

## See also

* [Commitments](/core-concepts/commitments) - the shared signed-message primitive
* [Direct settlement](/settlement-modes/direct-settlement)
* [Bundle settlement](/settlement-modes/bundle-settlement)
* [Clearing rounds](/settlement-modes/clearing-rounds)
* [Benchmarks methodology](/benchmarks/methodology)