> For the complete documentation index, see [llms.txt](https://docs.axiomprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.axiomprotocol.io/protocol-design/implementation-design/data-flow.md).

# Data Flow

Stake XRP (and stablecoins if added) → Snapshot → Eligibility Proofs → MarketFactory → `AxiomCTFMarket` + `AxiomConditionalTokens` → Offchain Matching Engine → `AxiomCTFExchange` → Resolution → Redemption → Staker Fee Recipient / Incentives / Dev Treasury

Trading and settlement flow:

1. A logical market is created through `MarketFactory`.
2. One or more `AxiomCTFMarket` contracts prepare the underlying conditions.
3. Users sign orders and the offchain matching engine maintains the live book.
4. Matched trades settle atomically through `AxiomCTFExchange`.
5. The market resolves through governance.
6. Winning positions are redeemed for collateral.

### Optimization

* Merkle proofs for eligibility verification.
* Offchain matching with onchain final settlement.
* Batch settlement for capital and gas efficiency.
* Epoch-based aggregation for rewards and penalty caps.


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