# Swap Funding FAQ: Flow, Custody and Validation

Separate execution-credit top-ups from conditional invoice jobs and evaluate their custody, settlement and recovery behaviour.

Canonical HTML: <https://damagebdd.com/articles/swap_funding_faq.html>



<a id="what-does-swap-funding-refer-to"></a>

## What does “swap funding” refer to?

Earlier pages used the term for both a Lightning-to-DAMAGE credit purchase and
a conditional invoice/job/contract workflow. They should be evaluated separately.
The [payment-flow reference](../payments.md) supplies the common definitions.


<a id="does-a-normal-top-up-hold-funds-until-tests-pass"></a>

## Does a normal top-up hold funds until tests pass?

The documented top-up listener credits DAMAGE after invoice settlement. It
is not described as a milestone escrow. Check invoice settlement and token
credit independently; this documentation does not establish atomic exchange.


<a id="what-does-the-conditional-job-reference-describe"></a>

## What does the conditional job reference describe?

The [step reference](../features/funding_swap.md) describes a hold invoice,
a swap option and a job registry, followed by settlement-related assertions.
That flow has pending states and cannot also be described as having no holding,
no cancellation and immediate settlement in every case.

The presence of those steps is not a complete live acceptance record. Verify
the installed module and exercise settle, cancel, expiry, duplicate callbacks
and restart before offering the workflow.


<a id="who-controls-the-assets"></a>

## Who controls the assets?

Document the actual wallet, key, preimage and contract authorities at each
stage. Hosted Aeternity accounts are described as custodial; an external wallet
may be user-controlled. A protocol name does not establish custody of every
part of a service.


<a id="when-is-a-contractor-paid"></a>

## When is a contractor paid?

Under the [documented contractor process](../contractors.md), the maintainer
reviews and accepts work, then records an agreed BTC or Lightning payment.
A token-spend record pays for execution; it does not by itself show contractor
compensation. Automatic payout requires separately demonstrated job logic.


<a id="does-damage-guarantee-a-return-or-redemption"></a>

## Does DAMAGE guarantee a return or redemption?

No return, buyback, reserve backing or immediate conversion is promised by
this documentation. DAMAGE's role is execution accounting as described in
[tokenomics](../tokenomics.md). Use the service's actual quote and terms.


<a id="does-the-terminology-establish-regulatory-status"></a>

## Does the terminology establish regulatory status?

No. “Software-only”, “utility”, “swap” and “non-custodial” do not establish a
legal classification or exemption. Earlier categorical assertions about
registration, custody and investment-scheme status are not retained. Assess
the actual service, control of assets, parties and applicable obligations.
The [token terms](../token_tos.md) must describe the arrangement being offered.


<a id="what-would-a-useful-demonstration-show"></a>

## What would a useful demonstration show?

One job identity across the invoice, token credit, execution report, acceptance
and any payout. Include a successful case, expiry, refusal, interruption and
recovery. Publish the revision and results for the tested flow without
extending them to every payment interface in the stack.