> For the complete documentation index, see [llms.txt](https://docs.yodl.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yodl.fi/technical-components/settlement-relayer.md).

# Settlement Relayer

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The Settlement Relayer (SR) serves as YODL’s coordination layer between Operators and on-chain infrastructure.\
It standardizes RFQs, enforces protocol policy, and issues the witnessed Permit2 signature bundle (sigBlob) that each Operator’s Orchestrator verifies through `isValidSignature`.

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#### **What YODL Manages**

* **RFQ Construction & Policy:** Builds quotes and enforces fee bands, taker whitelists, exposure limits, cooldowns, and rate caps.
* **Witnessed Signing:** Generates the `Permit2 + RFQ` witness package used by orderflow venues and verified by the Operator’s Orchestrator.
* **Sequencing & Capacity Control:** Queues or rejects RFQs when allocation or cooldown thresholds are hit, ensuring no reuse of allocated vault liquidity.
* **Finalize & Repay Coordination:** Tracks fills, manages finalize windows, and pauses execution if vault solvency or policy checks fail.
* **Aggregator Integration:** Hosts `/rfq` and `/order` endpoints — Operators interact via authenticated APIs, with no manual setup required.

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#### **What Operators Manage**

* **Binary Connectivity:** Configure and maintain the Operator Binary’s connection to the Settlement Relayer’s authenticated API endpoint.
* **Quote Transmission:** Sign and relay accounting transactions and quotes to the SR within the specified latency window (≤ 500 ms).
* **Transaction Lifecycle:** Trigger accounting → finalization → repayment flows through the SR to ensure vaults are restored on schedule.
* **System Uptime:** Maintain 99.5%+ runtime for the Operator Binary; downtime impacts Operator Reputation and may trigger Operator slashing.