<?xml version="1.0" encoding="utf-8"?>
<rfc xmlns:xi="http://www.w3.org/2001/XInclude" version="3" category="exp"
     docName="draft-laxsharma-pact-02" ipr="trust200902"
     tocInclude="true" symRefs="true" sortRefs="false">
  <front>
    <title abbrev="PACT">PACT: Co-Signed Task Contracts, Delivery and Verdict Records, and Outcome Records for Autonomous Agents</title>
    <seriesInfo name="Internet-Draft" value="draft-laxsharma-pact-02"/>
    <author fullname="Laxmikant Sharma" initials="L." surname="Sharma">
      <organization>Independent</organization>
      <address><email>laxsharma79@gmail.com</email></address>
    </author>
    <date year="2026" month="September" day="16"/>
    <keyword>autonomous agents</keyword>
    <keyword>agent commerce</keyword>
    <keyword>signed records</keyword>
    <keyword>verification</keyword>
    <keyword>Merkle tree</keyword>

    <abstract>
      <t>Autonomous agents can already prove who they are, show whose authority they act under, find and call one another, and pay. What no existing specification lets them do is agree on a task
      in a form a third party can check, deliver against it, have the
      delivery judged by someone other than the performer, and carry away a
      record of the outcome that a stranger can verify. This document
      specifies PACT, a set of signed JSON records that closes that gap.</t>

      <t>PACT defines four things: a co-signed task contract whose digest covers its signature set; a Verdict record bound by digest to the Delivery it judges; a Facilitator-signed event trace and Outcome Record for every contract, recorded once, in one order, by a party other than the performer; and a Merkle commitment from a parent's Outcome Record to its subcontracts' Outcome Records.</t>

      <t>Settlement terms are carried by reference to a profile defined
      outside this document. This document specifies no escrow, custody or
      release of value, and takes no position on the legal effect of any
      record it defines.</t>
    </abstract>
  </front>

  <middle>

    <section anchor="intro"><name>Introduction</name>

      <section anchor="motivation"><name>Motivation</name>
        <t>By late 2026 an autonomous agent can prove who it is, show whose
        authority it acts under, discover another agent, call it, record what
        happened in a tamper-evident receipt, and pay for the call. Each of
        those is the subject of active standardisation, and several are
        specified in more detail than this document specifies anything.</t>

        <t>What none of them provides is interoperability at the level of the
        task. Two agents built by different vendors have no common record of
        what one asked the other to do, no common form for the result, no way
        to have that result judged by a third implementation against criteria
        fixed before the work began, and no record of the outcome that a
        fourth implementation can verify without trusting any of the first
        three. Receipts record that an action occurred, audit records establish whether behaviour matched intent, and payment schemes move value on the payer's instruction. None of them says what was agreed, what
        was delivered, or whether the one met the other.</t>

        <t>Those documents leave that gap on purpose, since it is outside their scope, and correctly so. It is the gap this document addresses, and only that gap.</t>
      </section>

      <section anchor="scope"><name>What This Document Specifies, and What It Does Not</name>
        <t>PACT specifies exactly four things: a co-signed contract record
        whose digest covers its signature set (<xref target="vtc"/>); a
        Delivery record and the Verdict record bound to it by digest
        (<xref target="delivery"/>, <xref target="verdicts"/>); an event
        trace, signed by a Facilitator, from which one Outcome Record per
        contract is produced (<xref target="status"/>,
        <xref target="outcomes"/>); and a Merkle commitment from a parent's
        Outcome Record to its children's (<xref target="merkle"/>).</t>

        <t>A contract names its settlement terms by reference: a profile
        identifier, a digest over the profile's bytes, and a parameter object
        that this document does not read (<xref target="terms"/>). What those
        terms mean, and everything about who holds or moves value under them,
        is the profile's to say. This document specifies the records, their
        digests, who signs each one, the order in which a Facilitator records
        events, and a commitment across records. That is the whole of it. A
        contract carries a price and names a settlement binding, since a
        task contract without them is not one; what happens to the price is
        the profile's, and what the binding reports is the binding's.</t>

        <t>A deployment relies on other specifications, agreements or
        arrangements for: the meaning of the terms a contract names; agent
        identity and key distribution; delegation of authority from a human or
        organisational principal; agent discovery; transport security beyond
        <xref target="RFC9325"/>; an audit or accountability architecture; a
        transparency service; a payment rail or settlement network; a
        reputation system; and the resolution of any disagreement the records
        do not settle.</t>

        <t>Carrying terms by reference is an old pattern in this series.
        ACME <xref target="RFC8555"/> carries a terms-of-service URL and, where a server chooses to require it, has the client assert agreement to those terms before an account is created, without defining a single term. A certificate carries its
        policy as an identifier whose rules live outside the IETF
        (<xref target="RFC5280"/>, Section 4.2.1.4), and the framework for
        writing those rules <xref target="RFC3647"/> says it does not aim to
        provide legal advice. The Internet Open Trading Protocol
        <xref target="RFC2801"/> specified the messages of a trade and left
        the trade's terms to the parties. PACT follows that line.</t>

        <t>Two mechanisms present in the -00 revision <xref target="I-D.laxsharma-pact-00"/> remain withdrawn:
        contract channels, and the sealed-bid award procedure. The reasons are
        recorded in <xref target="I-D.laxsharma-pact-01"/> and are not
        repeated. The change from -01 to this revision is listed in
        <xref target="changes"/>.</t>
      </section>

      <section anchor="related"><name>Relationship to Existing Work</name>
        <t>PACT's agree, perform, verify, record loop is an instance of
        optimistic fair exchange <xref target="ASOKAN98"/>, in which a third
        party is contacted only when the exchange fails. What that literature
        establishes is what a third party must be able to observe for an
        exchange to be fair; the records in this document are that
        observation, written down in a form two implementations can
        compare.</t>

        <t>Two adjacent Internet-Drafts address agent commerce settlement
        directly. <xref target="I-D.hood-agtp-commerce"/> carries Work
        Completion Records and an audit-verified settlement timing;
        <xref target="I-D.stone-vcap-ap2-binding"/> binds verified commerce
        settlement to the Agent Payments Protocol. This document binds to neither and is designed to be usable alongside either.</t>

        <t>Five bodies of IETF work touch the same records, and the
        relationship to each is stated here so that it is not left to the
        reader.</t>

        <dl>
          <dt>RATS.</dt><dd><xref target="RFC9334"/> defines Verifier,
          Evidence and Attestation Result as terms of art: a RATS Verifier
          appraises Evidence about an Attester. PACT's Verifier evaluates a
          Delivery against an instrument the parties committed to, and its
          terminal record is an Outcome Record, not an attestation. The -01
          revision called that record a Work Attestation and used the RATS
          words with other meanings; this revision renames the record and
          defines its remaining shared vocabulary in
          <xref target="terminology"/>. Where a verification tier relies on
          hardware attestation, the RATS architecture applies unchanged and
          PACT consumes its results.</dd>
          <dt>SCITT.</dt><dd><xref target="RFC9943"/> defines signed-statement
          transparency and <xref target="RFC9942"/> defines COSE receipts for
          it. PACT does not define a transparency service; a Facilitator that
          wants its Outcome Records to be publicly append-only can register
          them with a SCITT transparency service, and
          <xref target="sec-facilitator"/> says which Facilitator
          misbehaviour that closes. The Merkle commitment in
          <xref target="merkle"/> is not a transparency log: it is a fixed
          commitment from one record to a known, finite set of other records,
          and it uses the tree of <xref target="RFC9162"/> for its
          construction only.</dd>
          <dt>HTTPAPI.</dt><dd><xref target="I-D.ietf-httpapi-idempotency-key-header"/>
          is the general mechanism for making a POST safe to retry. PACT does
          not use it, because every object it carries is committed by the
          digest of its own canonical form and that digest is the idempotency
          key (<xref target="ep-idempotency"/>). Error reporting follows
          <xref target="RFC9457"/>.</dd>
          <dt>WIMSE.</dt><dd><xref target="I-D.ietf-wimse-aims"/> gives
          workload and agent identity a home. PACT does not define an identity
          format; a <tt>kid</tt> resolves as <xref target="keyres"/> says. An identity system defined elsewhere is used by naming its identifiers in one of the two forms that section resolves; a further form needs one resolution rule added there, and nothing else in this document changes.</dd>
          <dt>SATP.</dt><dd><xref target="I-D.ietf-satp-core"/> transfers a
          digital asset between two gateways with evidence a third party can
          verify. An Outcome Record moves no asset. It is a signed statement that certain records were received in a certain order, and what any of that means for an
          asset is the terms profile's to say.</dd>
        </dl>

        <t>Verification evidence for hardware-attested tiers follows the architecture of <xref target="RFC9334"/> and the EAT format of <xref target="RFC9711"/>.
        Signed, hash-chained action receipts
        <xref target="I-D.sahu-agent-action-receipts"/>, composition of
        accountability records
        <xref target="I-D.mih-sato-agent-accountability-composition"/>,
        delegation chains
        <xref target="I-D.asor-wimse-agent-delegation-chain"/>, and
        contestability bindings
        <xref target="I-D.pinto-agent-authz-contestability"/> are each
        specified elsewhere, and PACT consumes rather than restates them.</t>
      </section>

      <section anchor="experiment"><name>The Experiment</name>
        <t>This document is Experimental, and an individual submission with no formal standing in the standards process: no working group has adopted it and the IETF has not endorsed it. The question it tests is stated
        over protocol observables only. Given the same sequence of posted records, the same clock readings and the same reports from the settlement binding, two independent Facilitator
        implementations should produce the same event trace (<xref target="events"/>). Given the same trace and the same terms
        profile, they should produce the same Outcome Record body
        (<xref target="outcomes"/>), byte for byte after canonicalization.
        The experiment succeeds if two independent Facilitators, serving
        Buyers and Sellers built by different implementers, reach every
        terminal state in <xref target="fig-states"/> with Outcome Records
        either can verify and that agree. It fails, and that would itself be
        worth recording, if the trace turns out to under-determine the
        outcome, which is to say if two honest implementations reading the
        same records disagree about what happened. Experience should be
        reported to the author and to the repository named in
        <xref target="implstatus"/>. The non-normative profile in
        <xref target="appendix-profile"/> exists so that the experiment can
        be run before any other profile is written.</t>
      </section>
    </section>

    <section anchor="conventions"><name>Conventions and Definitions</name>
      <t>The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT",
      "SHOULD", "SHOULD NOT", "RECOMMENDED", "NOT RECOMMENDED", "MAY", and
      "OPTIONAL" in this document are to be interpreted as described in
      BCP 14 <xref target="RFC2119"/> <xref target="RFC8174"/> when, and only
      when, they appear in all capitals, as shown here.</t>

      <t>Canonical form. Every JSON object defined here is canonicalized with
      JCS <xref target="RFC8785"/> before hashing or signing. Implementations
      MUST order object keys by UTF-16 code unit as
      <xref target="RFC8785"/> Section 3.2.3 requires. Sorting by Unicode code
      point is a common substitution; it agrees with the required order until a key outside the Basic Multilingual Plane is compared with one whose first differing unit lies in U+E000 to U+FFFF, where the two orders disagree. Numbers
      MUST be serialized as <xref target="RFC8785"/> Section 3.2.2.3
      requires, which is how ECMAScript prints them: the number one is
      <tt>1</tt>, whatever type held it, and never <tt>1.0</tt>.</t>

      <t>Figures. A figure line that would exceed the page width is folded
      with the single backslash strategy of <xref target="RFC8792"/>, and a
      figure that contains a fold begins with the header line that RFC
      requires. The figure is read after unfolding; the digests it prints
      are whole once the fold is removed.</t>

      <t>Object digest. The digest of an object is the string
      <tt>sha256:</tt> followed by the lowercase hexadecimal SHA-256 of the
      canonical form of the whole object, including every signature member it
      carries. Every hash member in this document that names another object
      (<tt>vtc_hash</tt>, <tt>delivery_hash</tt>, <tt>challenge_hash</tt>,
      the <tt>object</tt> member of a trace entry) is that object's digest, and an element of the list D in <xref target="merkle"/> is the 32 bytes that digest's hexadecimal encodes. A digest that
      excluded signatures would prove what was written and not who agreed to
      it; the -00 revision had that defect and the -01 revision fixed it for
      the contract only. This revision applies one construction
      everywhere.</t>

      <t>Signing input. A signature over an object is computed over the
      canonical form of the object with the signing member (<tt>signature</tt>
      or <tt>signatures</tt>) removed, as <xref target="conf-sig"/>
      specifies. The digest of an object and the signing input of an object
      are therefore different byte strings, and the difference is the
      signature set.</t>

      <t>Version. The <tt>pact</tt> member carries a version of the form
      major.minor; this document defines 0.2. Every object defined here is
      hash-committed and signed, so a member an implementation does not
      recognise is inside the commitment and cannot be ignored safely. An
      implementation MUST reject an object whose <tt>pact</tt> version it
      does not implement, and MUST reject an object carrying a member this
      document does not define for it, with two exceptions: the contents of <tt>terms.parameters</tt> (<xref target="terms"/>), which the named profile defines and this document does not read; and the members of a Delivery's <tt>evidence</tt>, a Challenge's <tt>proof</tt> and a TaskSpec's <tt>constraints</tt> beyond those <xref target="dictionary"/> names, which the verification profile defines. Extension is by a
      new version, not by adding members.</t>

      <t>Time. Every timestamp is an RFC 3339 date-time
      <xref target="RFC3339"/> in UTC with the "Z" designator. The
      Facilitator's clock governs every deadline and window in this
      document: the instant at which the Facilitator records an event is the
      instant that counts, that instant is what the trace carries, and
      parties SHOULD allow for skew when acting near a boundary.
      <xref target="sec-facilitator"/> says what that clock can and cannot
      prove.</t>

      <t>Amounts. An amount is a decimal string with no sign, no exponent and a
      fractional part of two to eighteen digits; comparisons are exact and
      no rounding is implied. A currency is an asset identifier whose
      namespace is defined by the settlement binding named in
      <tt>price.settlement</tt>, and need not be an ISO 4217 code. A network is a ledger identifier in the form the same binding defines; the examples use <xref target="CAIP-2"/> chain identifiers. This
      document carries amounts; it does not say what any amount is for. Where
      a record produced under this document lists amounts, as
      <tt>terms_result</tt> does (<xref target="terms-result"/>), the meaning
      of every entry is the named profile's.</t>

      <t>Identifiers. A party identifier is a URI. Two identifiers name the
      same party when they are equal after the normalization in
      <xref target="independence"/>, and every comparison of identifiers in
      this document is made after that normalization.</t>

      <section anchor="terminology"><name>Terminology</name>
        <t>Five words in this document have meanings elsewhere that are
        close enough to mislead, and are defined here once.</t>
        <dl>
          <dt>Contract:</dt><dd>Used in this document for a co-signed JSON
          object of the form in <xref target="vtc"/>, and for nothing else.
          This document takes no position on whether any such object is a
          contract in law, in any jurisdiction, and defines no obligation
          between the parties that sign one.</dd>
          <dt>Verifier, Verdict:</dt><dd>A Verifier here is the party that
          evaluates a Delivery against the instrument the contract committed
          to, and a Verdict is its signed finding. This is not the Verifier
          of <xref target="RFC9334"/>, which appraises Evidence about an
          Attester; the two roles may be played by the same software in a
          hardware-attested tier, and are still different roles.</dd>
          <dt>Evidence:</dt><dd>The <tt>evidence</tt> member of a Delivery is
          the set of artefacts a Verifier evaluates, produced by the Seller.
          It is not Evidence in the sense of <xref target="RFC9334"/>. The member name is kept because it is the ordinary word for what the member holds; the RATS term names a role in an attestation architecture, and this note is the disambiguation.</dd>
          <dt>Facilitator:</dt><dd>The party that runs the state machine of
          <xref target="overview"/> for a contract: it accepts or refuses the
          records posted to it, records events in one order on its own clock,
          and signs the trace and the Outcome Record. Nothing in this document
          says that a Facilitator holds anything of value, and nothing in it
          requires that it does.</dd>
        </dl>
        <t>The remaining roles are defined by what they sign and receive in
        <xref target="roles"/>, and the objects by their members in
        <xref target="dictionary"/>.</t>
      </section>
    </section>

    <section anchor="dictionary"><name>Data Dictionary</name>
      <t>This section lists every member this document defines, by the object
      that carries it, with its type, whether it is required in that object,
      and what it commits to. It is a dictionary and not a rulebook: the rule
      that a record omitting a required member, or carrying one this document
      does not define for it, does not conform is stated once, in <xref target="conf-rules"/>; the rules a Facilitator applies when it
      accepts or refuses a record are in <xref target="conformance"/> and in
      the section that defines the record. No sentence in this section
      requires anything of any party. Where a member's meaning is the named
      terms profile's, the entry says so and says nothing more.</t>

      <t>Types are JSON types. A digest is a string of the form in
      <xref target="conventions"/>. An amount is a string of the form in
      <xref target="conventions"/>. A URI is a string. A timestamp is a
      string of the form in <xref target="conventions"/>. Cardinality is
      written as required or optional.</t>

      <section anchor="dict-common"><name>Members Common to Every Record</name>
        <dl>
          <dt><tt>pact</tt>:</dt><dd>string, required. The protocol version;
          <tt>0.2</tt> for objects defined by this document.</dd>
          <dt><tt>type</tt>:</dt><dd>string, required. The object's type name:
          <tt>VerifiableTaskContract</tt>, <tt>Delivery</tt>,
          <tt>Verdict</tt>, <tt>Challenge</tt>, <tt>ContractStatus</tt>,
          <tt>OutcomeRecord</tt>, or <tt>FacilitatorCapabilities</tt>.</dd>
          <dt><tt>signature</tt>:</dt><dd>object, required in Delivery,
          Verdict, Challenge, ContractStatus and the capability document. One
          JWS entry of the form in <xref target="conf-sig"/>, by the single
          signer of that record.</dd>
          <dt><tt>signatures</tt>:</dt><dd>array of objects, required in the
          contract and in the Outcome Record. JWS entries of the form in
          <xref target="conf-sig"/>, sorted as that section says. Commits, in
          the contract, to who agreed; in the Outcome Record, to which
          Facilitator issued it.</dd>
        </dl>
      </section>

      <section anchor="dict-vtc"><name>Contract Members</name>
        <t>Carried in the Verifiable Task Contract (<xref target="vtc"/>),
        media type <tt>application/vnd.pact.contract+json</tt>.</t>
        <dl>
          <dt><tt>id</tt>:</dt><dd>string, required. Contract identifier,
          unique among the contracts of the Facilitator named in
          <tt>parties.facilitator</tt>.</dd>
          <dt><tt>parties</tt>:</dt><dd>object, required. The identifiers of
          the parties, by role: <tt>buyer</tt> (URI, required),
          <tt>seller</tt> (URI, required), <tt>facilitator</tt> (URI,
          required), <tt>verifier</tt> (URI, optional). Commits to who plays
          each role for this contract.</dd>
          <dt><tt>task</tt>:</dt><dd>object, required. <tt>spec_hash</tt>
          (digest, required) commits to a TaskSpec (<xref target="taskspec"/>);
          <tt>spec_uri</tt> (URI, optional) says where its bytes may be
          fetched; <tt>deadline</tt> (timestamp, required) is the instant at or after which the <tt>deadline-passed</tt> event may be recorded
          (<xref target="events"/>).</dd>
          <dt><tt>price</tt>:</dt><dd>object, required. <tt>amount</tt>
          (amount, required), <tt>currency</tt> (string, required),
          <tt>settlement</tt> (URI, required, naming a settlement binding),
          <tt>network</tt> (string, required, in the form the binding
          defines). Commits to a figure and a venue that both parties signed.
          The meaning of the figure is the named terms profile's.</dd>
          <dt><tt>verification</tt>:</dt><dd>object, required. <tt>tier</tt>
          (string, required), <tt>profile</tt> (string or URI, required;
          <xref target="profiles"/>), <tt>criteria_hash</tt> (digest,
          required; the manifest digest of the acceptance instrument per
          <xref target="hashes"/>), <tt>max_verdict_seconds</tt> (integer, required, greater than zero; the longest interval after <tt>delivered</tt> within
          which a first Verdict is recorded before <tt>verdict-lapsed</tt>
          may be). Commits to how a
          Delivery is judged and by what.</dd>
          <dt><tt>flow</tt>:</dt><dd>string, required. One of
          <tt>verdict-first</tt>, <tt>delivery-first</tt>, <tt>no-window</tt>
          (<xref target="flows"/>). Selects the shape of the state machine
          for this contract.</dd>
          <dt><tt>terms</tt>:</dt><dd>object, required
          (<xref target="terms"/>). <tt>profile</tt> (URI, required) names
          a terms profile; <tt>profile_hash</tt> (digest, required) commits
          to the profile's bytes as <xref target="terms"/> says;
          <tt>parameters</tt> (object, required, may be empty) carries the
          profile's parameters. This document reads no member of
          <tt>parameters</tt>; every one of them means what the named
          profile says.</dd>
          <dt><tt>challenge</tt>:</dt><dd>object, required.
          <tt>window_seconds</tt> (integer, required, greater than zero) is the
          duration of the challenge window; <tt>max_dispute_seconds</tt> (integer, required, greater than zero) is the longest interval after a
          <tt>challenge</tt> event within which a Verdict on that Challenge
          is recorded before <tt>dispute-lapsed</tt> may be.</dd>
          <dt><tt>parent</tt>:</dt><dd>object, optional; present only in a
          subcontract (<xref target="trees"/>). <tt>vtc_id</tt> (string,
          required), <tt>vtc_hash</tt> (digest, required), and
          <tt>facilitator</tt> (URI, required) identify the parent contract
          and the Facilitator that holds it.</dd>
        </dl>
      </section>

      <section anchor="dict-taskspec"><name>TaskSpec Members</name>
        <t>The TaskSpec is the content committed by <tt>task.spec_hash</tt>
        (<xref target="taskspec"/>). It is not transmitted over the
        endpoints of this document.</t>
        <dl>
          <dt><tt>description</tt>:</dt><dd>string, required. A statement of
          the work in natural language.</dd>
          <dt><tt>inputs</tt>:</dt><dd>object, optional. <tt>schema_uri</tt>
          with <tt>schema_hash</tt>, and where a representative sample is
          published, <tt>sample_uri</tt> with <tt>sample_hash</tt>; each URI
          with its digest over the dereferenced bytes.</dd>
          <dt><tt>deliverable</tt>:</dt><dd>object, required. <tt>format</tt>
          (string) and <tt>schema_uri</tt> with <tt>schema_hash</tt>.</dd>
          <dt><tt>acceptance</tt>:</dt><dd>object, required. The verification
          instrument: <tt>harness_uri</tt> with <tt>harness_hash</tt> for
          re-execution tiers, enclave and model policy for attestation tiers,
          a proof statement with its verifying key for proving tiers, or
          <tt>rubric_uri</tt> with <tt>rubric_hash</tt> for judgment tiers;
          plus <tt>thresholds</tt> (object) in machine-readable form.
          <tt>harness_hash</tt> equals the contract's
          <tt>criteria_hash</tt>.</dd>
          <dt><tt>constraints</tt>:</dt><dd>object, optional. Tool
          prohibitions, confidentiality and compliance conditions, in a form
          this document does not define.</dd>
        </dl>
      </section>

      <section anchor="dict-delivery"><name>Delivery Members</name>
        <t>Carried in the Delivery (<xref target="delivery"/>), media type
        <tt>application/vnd.pact.delivery+json</tt>.</t>
        <dl>
          <dt><tt>vtc_id</tt>, <tt>vtc_hash</tt>:</dt><dd>string and digest,
          required. Identify and commit to the contract performed.</dd>
          <dt><tt>work_hash</tt>:</dt><dd>digest, required. Commits to the
          delivered bytes, or to a manifest per <xref target="hashes"/> where
          the deliverable is a bundle.</dd>
          <dt><tt>work_uri</tt>:</dt><dd>URI, optional. Where the bytes may be
          fetched, subject to <xref target="sec-fetch"/>.</dd>
          <dt><tt>input_hash</tt>:</dt><dd>digest, required for tiers whose
          proof of nonconformance re-executes. Commits to the production input actually
          consumed.</dd>
          <dt><tt>evidence</tt>:</dt><dd>object, required. Members profiled by
          <tt>verification.tier</tt> and <tt>verification.profile</tt>; for the <tt>acceptance</tt> profile, <tt>profile</tt>, <tt>instrument_hash</tt> and <tt>results_hash</tt> (required) and <tt>results_uri</tt> (optional). Conformance to the profile is a validity
          condition of the Delivery, not a judgement on the work.</dd>
        </dl>
      </section>

      <section anchor="dict-verdict"><name>Verdict Members</name>
        <t>Carried in the Verdict (<xref target="verdicts"/>), media type
        <tt>application/vnd.pact.verdict+json</tt>.</t>
        <dl>
          <dt><tt>vtc_id</tt>:</dt><dd>string, required.</dd>
          <dt><tt>delivery_hash</tt>:</dt><dd>digest, required. Commits to the
          Delivery judged, including the Seller's signature over it.</dd>
          <dt><tt>challenge_hash</tt>:</dt><dd>digest, optional. Present when
          the Verdict answers a Challenge; commits to that Challenge.</dd>
          <dt><tt>outcome</tt>:</dt><dd>string, required. <tt>PASS</tt> or
          <tt>FAIL</tt>.</dd>
          <dt><tt>profile</tt>, <tt>instrument_hash</tt>:</dt><dd>string and
          digest, required. The verification profile applied and the digest of
          the instrument actually run, which equals the contract's
          <tt>criteria_hash</tt>.</dd>
          <dt><tt>results_hash</tt>:</dt><dd>digest, required. The digest of the results document the verification profile defines; for <tt>acceptance</tt>, the bytes of the results file the instrument wrote.</dd>
          <dt><tt>evaluated_at</tt>:</dt><dd>timestamp, required. The
          Verifier's own clock; informational, since the trace carries the
          Facilitator's.</dd>
        </dl>
      </section>

      <section anchor="dict-challenge"><name>Challenge Members</name>
        <t>Carried in the Challenge (<xref target="challenges"/>), media type
        <tt>application/vnd.pact.challenge+json</tt>.</t>
        <dl>
          <dt><tt>vtc_id</tt>, <tt>delivery_hash</tt>:</dt><dd>string and
          digest, required. Identify the contract and commit to the Delivery
          challenged.</dd>
          <dt><tt>proof</tt>:</dt><dd>object, required. Members profiled by
          <tt>verification.profile</tt>; for the <tt>acceptance</tt> profile, <tt>profile</tt>, <tt>instrument_hash</tt> and <tt>results_hash</tt> (required), <tt>results_uri</tt> and <tt>failing_checks</tt> (array of strings; optional).</dd>
          <dt><tt>costs</tt>:</dt><dd>object, optional. <tt>amount</tt> and
          <tt>currency</tt>: an amount the Challenger states. This document records it in the trace and reads it for
          nothing; its meaning is the named terms profile's.</dd>
        </dl>
      </section>

      <section anchor="dict-status"><name>Contract Status Members</name>
        <t>Carried in the Contract Status (<xref target="status"/>), media
        type <tt>application/vnd.pact.status+json</tt>, the Facilitator's
        signed response to every accepted POST.</t>
        <dl>
          <dt><tt>vtc_id</tt>, <tt>vtc_hash</tt>:</dt><dd>string and digest,
          required.</dd>
          <dt><tt>state</tt>:</dt><dd>string, required. A state name from
          <xref target="fig-states"/>.</dd>
          <dt><tt>trace</tt>:</dt><dd>array of objects, required. The event
          trace so far, in the order recorded (<xref target="events"/>). Each
          entry carries <tt>event</tt> (string, required), <tt>at</tt>
          (timestamp, required), <tt>object</tt> (digest, required where the event was caused by a posted record, and on <tt>dispute-lapsed</tt>, where it names the Challenge that lapsed), and the event-specific
          members listed in <xref target="events"/>.</dd>
          <dt><tt>issued_at</tt>:</dt><dd>timestamp, required. When this
          status was signed.</dd>
        </dl>
      </section>

      <section anchor="dict-outcome"><name>Outcome Record Members</name>
        <t>Carried in the Outcome Record (<xref target="outcomes"/>), media
        type <tt>application/vnd.pact.outcome+json</tt>.</t>
        <dl>
          <dt><tt>vtc_id</tt>, <tt>vtc_hash</tt>:</dt><dd>string and digest,
          required.</dd>
          <dt><tt>parties</tt>:</dt><dd>object, required. The contract's
          <tt>parties</tt> object, copied, so that the record names its
          subjects and which side of the contract each was on.</dd>
          <dt><tt>outcome</tt>:</dt><dd>object, required. <tt>state</tt>
          (string, required; <tt>FINAL</tt>, <tt>SETTLED</tt> or
          <tt>ABANDONED</tt>) and <tt>challenge_upheld</tt> (boolean,
          required).</dd>
          <dt><tt>work_hash</tt>:</dt><dd>digest, required where a Delivery was
          recorded. Binds the record to what was produced.</dd>
          <dt><tt>trace</tt>:</dt><dd>array of objects, required. The complete
          event trace, ending with the <tt>terminal</tt> event.</dd>
          <dt><tt>terms_result</tt>:</dt><dd>object, required
          (<xref target="terms-result"/>). <tt>profile</tt> and
          <tt>profile_hash</tt> (copied from the contract), <tt>currency</tt>
          (string), and <tt>transfers</tt> (array of objects), each with <tt>event</tt> (integer, the zero-based index of the trace entry the transfer follows), <tt>from</tt> (string), <tt>to</tt> (string), <tt>amount</tt>
          (amount) and <tt>code</tt> (string). The entries are the named
          profile's output for the trace; this document defines their form
          and two arithmetic invariants over them, and nothing about their
          meaning.</dd>
          <dt><tt>children_merkle_root</tt>:</dt><dd>digest, required where the
          contract has registered children and absent otherwise
          (<xref target="merkle"/>).</dd>
        </dl>
      </section>

      <section anchor="dict-capabilities"><name>Capability Document Members</name>
        <t>Carried in the Facilitator capability document
        (<xref target="wellknown"/>), media type
        <tt>application/vnd.pact.facilitator+json</tt>.</t>
        <dl>
          <dt><tt>facilitator</tt>:</dt><dd>URI, required. The identifier that
          appears in <tt>parties.facilitator</tt>.</dd>
          <dt><tt>issued_at</tt>:</dt><dd>timestamp, required. When the
          document was signed. Nothing in a document survives its Facilitator withdrawing a profile; <xref target="wellknown"/> says when to fetch it again.</dd>
          <dt><tt>settlement_bindings</tt>:</dt><dd>array of objects,
          required. Each with <tt>id</tt> (URI), <tt>networks</tt> and <tt>assets</tt> (arrays of strings), all required.</dd>
          <dt><tt>flows</tt>:</dt><dd>array of strings, required. The flows of <xref target="flows"/> the Facilitator implements; <xref target="flows"/> requires <tt>verdict-first</tt> among them.</dd>
          <dt><tt>verification_profiles</tt>:</dt><dd>array of strings, required. A contract naming a profile not listed is refused (<xref target="ep-propose"/>).</dd>
          <dt><tt>terms_profiles</tt>:</dt><dd>array of objects, required,
          with at least one entry. Each with <tt>id</tt> (URI) and
          <tt>profile_hash</tt> (digest): the terms profiles, at the
          revisions named, whose schedules this Facilitator evaluates.</dd>
          <dt><tt>max_contract_value</tt>:</dt><dd>object, optional. <tt>amount</tt> and <tt>currency</tt>; a contract whose price, stated in the same currency, exceeds it is refused, as is one whose price is stated in another currency (<xref target="ep-propose"/>).</dd>
          <dt><tt>challenge_deposit</tt>:</dt><dd>object, optional.
          <tt>amount</tt> and <tt>currency</tt>; see
          <xref target="challenges"/>.</dd>
          <dt><tt>retrieval</tt>:</dt><dd>string, optional. <tt>parties</tt>,
          the default of <xref target="sec-retrieval"/>, or <tt>open</tt>.</dd>
          <dt><tt>endpoints</tt>:</dt><dd>object, required. Maps each endpoint
          name in <xref target="endpoints"/> to an absolute URI.</dd>
        </dl>
      </section>

      <section anchor="roles"><name>Roles</name>
        <t>A role is defined by where its identifier appears, what it signs,
        and what it receives. Nothing else about a role is defined here.</t>
        <table anchor="tab-roles">
          <name>Roles, by what each signs and receives</name>
          <thead>
            <tr><th>Role</th><th>Identifier appears in</th><th>Signs</th>
                <th>Receives</th></tr>
          </thead>
          <tbody>
            <tr><td>Buyer</td><td><tt>parties.buyer</tt></td>
                <td>the contract</td>
                <td>Contract Status, Outcome Record</td></tr>
            <tr><td>Seller</td><td><tt>parties.seller</tt></td>
                <td>the contract; the Delivery; as the Buyer of a child,
                that child's contract (<xref target="tree-registration"/>)</td>
                <td>Contract Status, Outcome Record</td></tr>
            <tr><td>Facilitator</td><td><tt>parties.facilitator</tt>,
                <tt>parent.facilitator</tt>, the capability document</td>
                <td>Contract Status, Outcome Record, the capability
                document</td>
                <td>every posted record</td></tr>
            <tr><td>Verifier</td><td><tt>parties.verifier</tt>, or the
                <tt>kid</tt> of a Verdict</td>
                <td>the Verdict</td>
                <td>the Delivery and, on a Challenge, the Challenge</td></tr>
            <tr><td>Challenger</td><td>the <tt>kid</tt> of a Challenge</td>
                <td>the Challenge</td>
                <td>Contract Status</td></tr>
          </tbody>
        </table>
        <t>One identifier may play more than one role across contracts, and
        <xref target="independence"/> and <xref target="conf-rules"/> say which combinations within one contract a Facilitator refuses.</t>
      </section>
    </section>

    <section anchor="overview"><name>Protocol Overview</name>
      <t>A contract passes through four phases: Propose establishes the record, Agree co-signs it and a Facilitator accepts it, Complete produces a Delivery and a Verdict on it, and Record produces an Outcome Record. Every step after Agree is an event the Facilitator records on
      its own clock, in one order, and the sequence of those events is the
      contract's trace. The trace is the protocol's central object: the state
      machine is defined over it, every response a Facilitator gives carries
      the prefix recorded so far, and the Outcome Record carries the whole of
      it.</t>

      <figure anchor="fig-flow">
        <name>Message flow under the verdict-first flow, without a Challenge</name>
        <artwork type="ascii-art"><![CDATA[
 Buyer            Facilitator            Seller          Verifier
   |                   |                    |                |
   |<==== contract negotiated and co-signed ==>|             |
   |                   |                    |                |
   |-- POST contract ->|                    |                |
   |<-- Status --------|   [ accepted ]     |                |
   |                   |   [ funded ]       |                |
   |                   |                    |                |
   |                   |        [ Seller performs ]          |
   |                   |<-- POST Delivery --|                |
   |                   |-- Status --------->|  [ delivered ] |
   |                   |                    |                |
   |                   |---- Delivery, criteria_hash ------->|
   |                   |<--- POST Verdict -------------------|
   |                   |---- Status ------------------------>|
   |                   |   [ verdict PASS ]  [ window-opened ]
   |                   |   [ window-closed ] [ children-final ]
   |                   |   [ terminal FINAL ]                |
   |                   |                    |                |
   |<-- Outcome Record-|-- Outcome Record ->|                |
        ]]></artwork>
      </figure>

      <t>Every accepted POST is answered with a Contract Status
      (<xref target="status"/>), a Facilitator-signed object carrying the
      state and the trace so far. Nothing in the figure moves value, and no
      arrow in it is named for a movement of value. What a terms profile does
      at each bracketed event is the profile's, and it is reported once, in
      the Outcome Record, as a list the profile produced and the Facilitator
      signed.</t>

      <section anchor="states"><name>States</name>
        <figure anchor="fig-states">
          <name>Contract states</name>
          <artwork type="ascii-art"><![CDATA[
 ACCEPTED -funded-> FUNDED -delivered-> DELIVERED
    |                 |                    |
    | deadline-       | deadline-          | window-opened
    | passed          | passed             v
    |                 |          WINDOW_OPEN <------+
    |                 |            |       |        |
    |                 |  challenge |       | window | verdict PASS
    |                 |            v       | closed | on it, or
    |                 |         DISPUTED----|--------+ dispute-
    |                 |            |       |          lapsed
    |                 |    verdict |       |
    |                 |    FAIL    |       |
    v                 v            v       v
  +--------------------------------------------------+
  |                AWAITING_CHILDREN                 |
  +--------------------------------------------------+
                           | children-final, then terminal
                           v
           FINAL        SETTLED        ABANDONED
          ]]></artwork>
        </figure>

        <t>The figure omits three arrows that the table carries: a FAIL
        Verdict recorded in DELIVERED or in WINDOW_OPEN also leads to
        AWAITING_CHILDREN; under the <tt>no-window</tt> flow <tt>delivered</tt> leads there directly; and a Verdict that is late (<tt>verdict-lapsed</tt>)
        opens the window without one. FINAL, SETTLED and ABANDONED are
        terminal and each produces exactly one Outcome Record. The -01 revision had a state, RELEASING, named for a movement of value; it is gone. FUNDED remains, named for the event the settlement binding reports (<xref target="events"/>), and nothing here says what that report means.</t>

        <t>The state named PROPOSED in earlier revisions is gone. Between the
        parties' signatures and the Facilitator's acceptance a contract exists
        only on the parties' side, so no Facilitator could observe that state, and the -01 reference implementation never reported it, although the -01 Section 12.1 example printed it in a 201 response.</t>
      </section>

      <section anchor="events"><name>Events</name>
        <t>A trace entry is a JSON object with <tt>event</tt> (one of the
        names below), <tt>at</tt> (the Facilitator's clock when it was
        recorded), <tt>object</tt> where the entry records a posted record
        (that record's digest, <xref target="conventions"/>), and the members
        listed for the event. A Facilitator MUST record the entries of one
        contract in the order it recorded them and MUST NOT reorder, remove
        or alter an entry once a Status carrying it has been issued
        (<xref target="sec-facilitator"/> says what that rule does and does
        not prove).</t>

        <table anchor="tab-events">
          <name>Events: the state each is recorded in, the state that follows, and what the entry carries</name>
          <thead>
            <tr><th>Event</th><th>Recorded in; then. Members and condition</th></tr>
          </thead>
          <tbody>
            <tr><td><tt>accepted</tt></td><td>none; then ACCEPTED. <tt>object</tt> is <tt>vtc_hash</tt>. The contract passed <xref target="ep-propose"/>.</td></tr>
            <tr><td><tt>funded</tt></td><td>ACCEPTED; then FUNDED. <tt>ref</tt> (string, optional, in the form the settlement binding defines). Recorded when the settlement binding named in <tt>price.settlement</tt> reports that whatever the named terms profile requires before work starts is in place; how a Facilitator observes that is the binding's to say. Where the profile requires nothing, <tt>funded</tt> follows <tt>accepted</tt> in the same operation.</td></tr>
            <tr><td><tt>deadline-passed</tt></td><td>ACCEPTED or FUNDED; then AWAITING_CHILDREN. <tt>task.deadline</tt> has passed with no <tt>delivered</tt> entry.</td></tr>
            <tr><td><tt>delivered</tt></td><td>FUNDED; then DELIVERED, or under <tt>no-window</tt> AWAITING_CHILDREN directly. <tt>object</tt> is the Delivery's digest. The Delivery passed <xref target="delivery"/>.</td></tr>
            <tr><td><tt>window-opened</tt></td><td>DELIVERED; then WINDOW_OPEN. Recorded in the same operation as the entry it follows, with the same <tt>at</tt>: under <tt>delivery-first</tt> the <tt>delivered</tt> entry; under <tt>verdict-first</tt> a PASS <tt>verdict</tt> or <tt>verdict-lapsed</tt>. <tt>closes_at</tt> (timestamp, required) is <tt>at</tt> plus <tt>challenge.window_seconds</tt>.</td></tr>
            <tr><td><tt>verdict</tt></td><td>DELIVERED (<tt>verdict-first</tt>, no Verdict standing), WINDOW_OPEN (<tt>delivery-first</tt>, no Verdict standing) or DISPUTED (answering a pending Challenge); then as the condition says. <tt>object</tt> is the Verdict's digest; <tt>signer</tt> (the <tt>kid</tt> of its signature); <tt>outcome</tt> (PASS or FAIL); <tt>answers</tt> (digest of the Challenge, present exactly when the Verdict carries <tt>challenge_hash</tt>); <tt>supersedes</tt> (digest of the Verdict that stood, present exactly when one did). Then: FAIL leads to AWAITING_CHILDREN; PASS in DELIVERED leads to <tt>window-opened</tt>; PASS in WINDOW_OPEN changes the state of nothing; PASS in DISPUTED leads to WINDOW_OPEN once no Challenge is pending.</td></tr>
            <tr><td><tt>verdict-lapsed</tt></td><td>DELIVERED; unchanged. Under <tt>verdict-first</tt>, <tt>verification.max_verdict_seconds</tt> have passed since <tt>delivered</tt> with no <tt>verdict</tt>. <tt>window-opened</tt> follows in the same operation.</td></tr>
            <tr><td><tt>challenge</tt></td><td>WINDOW_OPEN or DISPUTED; then DISPUTED. <tt>object</tt> is the Challenge's digest; <tt>signer</tt> (the <tt>kid</tt> of its signature); <tt>costs</tt> copied from the Challenge when present. The Challenge passed <xref target="challenges"/> before <tt>closes_at</tt>.</td></tr>
            <tr><td><tt>dispute-lapsed</tt></td><td>DISPUTED; then WINDOW_OPEN. <tt>object</tt> is the Challenge's digest. <tt>challenge.max_dispute_seconds</tt> have passed since that <tt>challenge</tt> entry with no Verdict answering it. Leads to WINDOW_OPEN once no Challenge is pending; the earlier Verdict, if any, stands.</td></tr>
            <tr><td><tt>window-closed</tt></td><td>WINDOW_OPEN; then AWAITING_CHILDREN. <tt>closes_at</tt> has passed and no Challenge is pending. The window is never extended: a dispute that outlasts it delays this entry and does not move <tt>closes_at</tt>.</td></tr>
            <tr><td><tt>child-registered</tt></td><td>any non-terminal; unchanged. <tt>object</tt> is the child contract's digest; <tt>facilitator</tt> (URI). <xref target="tree-registration"/>.</td></tr>
            <tr><td><tt>child-final</tt></td><td>any non-terminal; unchanged. <tt>object</tt> is the child's Outcome Record digest; <tt>child</tt> (the child contract's digest).</td></tr>
            <tr><td><tt>child-unresolved</tt></td><td>any non-terminal; unchanged. <tt>child</tt> (the child contract's digest). The child's latest finality instant (<xref target="tree-timing"/>) has passed and no Outcome Record for it is held.</td></tr>
            <tr><td><tt>children-final</tt></td><td>AWAITING_CHILDREN; then terminal follows. Every registered child has a <tt>child-final</tt> or <tt>child-unresolved</tt> entry. A contract with no registered children records this entry on entering AWAITING_CHILDREN.</td></tr>
            <tr><td><tt>terminal</tt></td><td>AWAITING_CHILDREN; then FINAL, SETTLED or ABANDONED. <tt>state</tt> (the terminal state) and <tt>challenge_upheld</tt> (boolean). ABANDONED where <tt>deadline-passed</tt> was recorded; SETTLED where the standing Verdict is FAIL, with <tt>challenge_upheld</tt> true when that Verdict answers a Challenge; FINAL otherwise.</td></tr>
          </tbody>
        </table>

        <t>The standing Verdict is the last <tt>verdict</tt> entry in the
        trace that no later entry supersedes. A Challenge is pending from its
        <tt>challenge</tt> entry until a <tt>verdict</tt> entry answers it, a <tt>dispute-lapsed</tt> entry names it, or a <tt>terminal</tt> entry is recorded.</t>

        <t>Every instant in the table is read from the Facilitator's clock,
        and an entry conditioned on an instant having passed is recorded at
        the first opportunity after it, which need not be that instant. Two Facilitators given the same posted records, the same clock readings and the same reports from the settlement binding record the same trace; that is the determinism the
        experiment in <xref target="experiment"/> tests, and the reason
        every condition above is stated over the trace, the clock and the binding's report, and nothing else.</t>

        <t>An instant has passed when the Facilitator's clock reads that
        instant or a later one, and a record received when the clock reads an
        instant has arrived at it, so a Challenge received when the clock
        reads <tt>closes_at</tt> is after the window. Before acting on a posted
        record a Facilitator MUST first record every clock-driven entry that
        is due, so that the record is judged in the state the clock produced;
        entries due at the same instant are recorded in the order of the
        table. The <tt>at</tt> of an entry MUST be no earlier than that of
        the entry before it, and a Status's <tt>issued_at</tt> MUST be no
        earlier than the <tt>at</tt> of its last entry.</t>
      </section>
    </section>

    <section anchor="vtc"><name>The Verifiable Task Contract</name>
      <t>A VTC is a JSON object, media type
      <tt>application/vnd.pact.contract+json</tt>, with the members in
      <xref target="dict-vtc"/>. A VTC is valid only if every required member is present, the Buyer and the Seller are distinct after normalization (<xref target="conf-rules"/>), any named Verifier satisfies <xref target="independence"/>, and both the Buyer and the Seller
      have contributed exactly one signature that verifies against a key bound
      to its identifier (<xref target="conf-rules"/>). The Facilitator and any
      Verifier do not sign the VTC; their assent is expressed by acting on it,
      and a Facilitator that will not act on a contract refuses it at
      <xref target="ep-propose"/>.</t>

      <t>The <tt>settlement</tt> identifier, the network and the asset are all
      carried inside <tt>price</tt> so that a co-signed VTC is bound to one
      venue. The -00 revision omitted them, which made a signed contract
      replayable against any facilitator, chain or token contract.</t>

      <figure anchor="fig-vtc">
        <name>A Verifiable Task Contract, signatures and parameters abbreviated</name>
        <sourcecode type="json" name="vtc.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "VerifiableTaskContract",
  "id": "vtc_9f2c11",
  "parties": {
    "buyer": "did:web:buyer.example:agents:procure-1",
    "seller": "did:web:dataforge.example:agents:etl-3",
    "facilitator": "did:web:settle.example",
    "verifier": "did:web:audit.example"
  },
  "task": {
    "spec_hash": "sha256:9491d28ac7a3fcd3f0bf279f78e793547cd4ef11\
   1d27ff6bee37f05531823b72",
    "spec_uri": "https://buyer.example/specs/taskspec.json",
    "deadline": "2026-11-14T00:00:00Z"
  },
  "price": {
    "amount": "180.00",
    "currency": "USDC",
    "settlement": "https://settle.example/bindings/ledger-1",
    "network": "eip155:8453"
  },
  "verification": {
    "tier": "T0-reexec",
    "profile": "acceptance",
    "criteria_hash": "sha256:0bdde1ab6b081d2b4bda580c5393756ae95c\
   10b8351c9c55eb9316416265fc1b",
    "max_verdict_seconds": 86400
  },
  "flow": "verdict-first",
  "terms": {
    "profile": "tag:laxsharma79@gmail.com,2026:pact:bonded-restit\
   ution",
    "profile_hash": "sha256:9fff6e3f3d99b26eb437a84b9de5b35124ccf\
   6956e835df2653b99d71d363a68",
    "parameters": {
      "...": "the profile's; not read here"
    }
  },
  "challenge": {
    "window_seconds": 3600,
    "max_dispute_seconds": 86400
  },
  "signatures": [
    {
      "protected": "...",
      "signature": "..."
    },
    {
      "protected": "...",
      "signature": "..."
    }
  ]
}
]]></sourcecode>
      </figure>

      <t>The values are the reference repository's
      (<xref target="example"/>), with the signatures abbreviated. The
      <tt>parameters</tt> object is shown elided on purpose: nothing in this
      document depends on what is in it.</t>

      <section anchor="hashes"><name>Hash Commitments and Content Conveyance</name>
        <t>Every URI carried inside hash-committed content MUST be accompanied
        by a sibling hash over the dereferenced bytes. The -00 revision
        committed <tt>harness_uri</tt> as a string while leaving the bytes at
        that URI uncommitted, which permitted a Buyer to substitute the
        acceptance instrument after signature, run the substituted
        instrument, and submit the failure as a valid proof of nonconformance. The -01
        revision stated the rule and its own reference TaskSpec broke it for
        three of four URIs; this revision's example carries all four
        sibling hashes, and the validator checks each.</t>
        <t>Where the committed content is a bundle of files rather than a
        single octet stream, the commitment MUST be computed as
        <tt>SHA-256(JCS(M))</tt> where M is an object mapping each file's
        path, relative to the bundle root and expressed with "/" separators,
        to the digest of its bytes in the string form of <xref target="conventions"/>, over every file in the bundle. A file whose name, or any directory on whose path, begins with a dot is not part of a bundle. A
        manifest of per-file digests is specified rather than an archive
        digest because archive formats carry ordering, timestamp and
        permission metadata that is not stable across producers. The same
        construction commits to a terms profile (<xref target="terms"/>).</t>
      </section>

      <section anchor="taskspec"><name>The Task Specification</name>
        <t>The content committed by <tt>spec_hash</tt> is a TaskSpec: a JSON
        object with the members in <xref target="dict-taskspec"/>,
        canonicalized per <xref target="RFC8785"/> before hashing. It is not
        transmitted over the endpoints of this document; the parties exchange
        it before signing, and <tt>spec_uri</tt> may say where.</t>

        <t>The <tt>acceptance</tt> object MUST carry the members required for
        the contract's tier: <tt>harness_uri</tt> and <tt>harness_hash</tt>
        for re-execution tiers, enclave and model policy for attestation
        tiers, a proof statement with its verifying key for proving tiers, or
        <tt>rubric_uri</tt> and <tt>rubric_hash</tt> for judgment tiers. An
        empty <tt>acceptance</tt> object MUST be rejected. The -00 revision's
        schema permitted one, which made every proof of nonconformance impossible.</t>

        <t>Thresholds MUST be stated so that they cannot be satisfied by
        returning almost nothing. A threshold expressed only as a rate over
        returned rows is satisfied by returning one correct row out of
        millions; a completeness condition relative to the committed input is
        therefore required wherever the deliverable is a transformation of
        that input.</t>
      </section>

      <section anchor="terms"><name>Terms</name>
        <t>The <tt>terms</tt> member names the settlement terms both parties
        signed, by reference. It carries a <tt>profile</tt> URI, a
        <tt>profile_hash</tt>, and a <tt>parameters</tt> object. This document
        defines no obligation between parties and takes no position on the
        legal effect of any object it defines; what the named profile says the
        parties have agreed to, and what any of it means between them, is the
        profile's and its authors' to say.</t>

        <t><tt>profile_hash</tt> is the manifest digest of
        <xref target="hashes"/> over the profile's bundle. A bundle usable
        with this document contains at least three files: the profile's prose,
        <tt>parameters.schema.json</tt>, a JSON Schema
        <xref target="I-D.bhutton-json-schema"/> for the <tt>parameters</tt> object, and
        <tt>vectors.json</tt>, whose form <xref target="terms-result"/>
        gives. A digest over prose alone would commit the parties to bytes and
        not to behaviour; the schema and the vectors are what make two
        implementations of the profile checkable against each other.</t>

        <t>A Facilitator MUST refuse a contract whose <tt>terms.profile</tt>
        and <tt>terms.profile_hash</tt> do not match an entry in the
        <tt>terms_profiles</tt> array of its own capability document
        (<xref target="wellknown"/>; <tt>terms-unsupported</tt>), so that no party signs terms the Facilitator will not evaluate, and MUST refuse a contract whose <tt>parameters</tt> do not validate against the named profile's <tt>parameters.schema.json</tt> (<tt>terms-parameters-invalid</tt>). This document reads <tt>parameters</tt> for no other purpose; the named profile's schedule and admission rule read them as the profile's. The rule of <xref target="conventions"/> that an
        undefined member is rejected does not apply inside
        <tt>parameters</tt>; the profile's schema governs there.</t>

        <t>A profile usable with this document defines, in its prose, a
        schedule: a total, deterministic function from a contract and a trace
        prefix (<xref target="events"/>) to the list of entries the profile
        emits at the last event of that prefix, in the form of
        <xref target="terms-result"/>. Total means every event in
        <xref target="tab-events"/> has a defined result, including the ones a
        profile author would rather not think about: a lapsed dispute, an
        unresolved child, a contract abandoned before it was funded.
        Deterministic means the result depends on the contract, the trace and
        nothing else, so that any party holding those can recompute it. The prose also names the accounts the schedule moves value between, and says which of them are internal, opened empty and required to close empty, and which are external. A profile MAY also state
        an admission rule: a condition on the contract, evaluated once at
        <tt>accepted</tt>, whose failure is reported with a problem type from
        the profile's namespace (<xref target="ep-errors"/>). This document does not
        register profiles and defines none normatively;
        <xref target="appendix-profile"/> carries one for the experiment.</t>

        <t>Everything the -01 revision said in its Section 5.3, and everything
        it said in its Section 7 about what is posted, released,
        returned or forfeited and when, is now the content of a profile. The
        member that carried those figures inside the contract is gone; the
        figures a profile needs are in <tt>parameters</tt>, and the -01
        figures in particular are the parameters of the profile in
        <xref target="appendix-profile"/>.</t>
      </section>
    </section>

    <section anchor="delivery"><name>The Delivery Record</name>
      <t>The Delivery is the record a contract is judged against. It is a
      JSON object, media type <tt>application/vnd.pact.delivery+json</tt>,
      with the members in <xref target="dict-delivery"/>, signed once by the
      Seller.</t>

      <t>A Facilitator MUST refuse a Delivery, with the problem type named,
      when: its <tt>vtc_hash</tt> does not match the contract
      (<tt>object-conflict</tt>); the contract is not in FUNDED
      (<tt>wrong-state</tt>); its signature does not verify against a key
      bound to <tt>parties.seller</tt> (<tt>signature-invalid</tt>,
      <tt>unexpected-signer</tt>); its <tt>evidence</tt> member is absent or
      does not conform to the verification profile named in the contract
      (<tt>evidence-nonconformant</tt>); or <tt>input_hash</tt> is absent
      where the tier re-executes (<tt>evidence-nonconformant</tt>). A refused
      Delivery is recorded in no trace; the contract stays in FUNDED and a
      conformant Delivery may follow before the deadline. The -01 revision
      treated a nonconformant Delivery as a FAIL Verdict, which decided a
      question about value inside a rule about shape; the consequence of a
      Seller reaching the deadline with nothing conformant recorded is now
      the <tt>deadline-passed</tt> event, and what that event costs anyone is
      the profile's.</t>

      <t>Conformance of <tt>evidence</tt> is a check on shape, not on
      substance: the Facilitator confirms that the members the profile
      requires are present and well formed, and nothing about whether the
      work is any good. That is why the check stays on the right side of the line
      drawn in <xref target="terminology"/>. Where <tt>task.deadline</tt> passes
      with no <tt>delivered</tt> entry, the Facilitator records
      <tt>deadline-passed</tt> (<xref target="events"/>). No window opens,
      because there is nothing to challenge.</t>

      <figure anchor="fig-delivery">
        <name>A Delivery for a T0-reexec contract, acceptance profile</name>
        <sourcecode type="json" name="delivery.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "Delivery",
  "vtc_id": "vtc_9f2c11",
  "vtc_hash": "sha256:7af52ecee9592740ca9a8b3e0bbd097cf765ff49493\
   04c2c855ca1d746ba6459",
  "work_hash": "sha256:a26dc519a79ac70835a71ea58c9e34f0625778aee2\
   80a3170b6b9a5037036ef0",
  "work_uri": "https://cdn.dataforge.example/o/a26d",
  "input_hash": "sha256:d7f43b3a51c28274adc4ebe535cc9de80f0b6d6c9\
   75a1d1ce519d582306338b1",
  "evidence": {
    "profile": "acceptance",
    "instrument_hash": "sha256:0bdde1ab6b081d2b4bda580c5393756ae9\
   5c10b8351c9c55eb9316416265fc1b",
    "results_hash": "sha256:28d334e0e0e0771eb5708452612ebcc6fbf84\
   8ebaca540214b4f6d2165688a51",
    "results_uri": "https://cdn.dataforge.example/o/28d3"
  },
  "signature": {
    "protected": "...",
    "signature": "..."
  }
}
]]></sourcecode>
      </figure>

      <t>The -01 revision said that a Buyer countersignature over the
      Delivery constituted a receipt. The Delivery's signing member is a
      single object, so no second signature could be carried, and the
      sentence is withdrawn. A Buyer that wants a record of receipt has one:
      the Status the Facilitator returns for the Delivery carries the
      <tt>delivered</tt> entry and the Facilitator's signature over it.</t>
    </section>

    <section anchor="verification"><name>Verdicts, Challenges and the Window</name>

      <section anchor="flows"><name>Flows</name>
        <t>The <tt>flow</tt> member selects one of three shapes for the state
        machine of <xref target="states"/>. A conformant Facilitator MUST implement <tt>verdict-first</tt> and MUST list it in the <tt>flows</tt> member of its capability document (<xref target="dict-capabilities"/>); the others are OPTIONAL, and a
        Facilitator MUST refuse a contract naming a flow it does not advertise
        (<tt>flow-unsupported</tt>).</t>
        <dl>
          <dt><tt>verdict-first</tt>:</dt><dd>A Verdict is recorded before the
          window opens. The window opens on a PASS Verdict or on
          <tt>verdict-lapsed</tt>; a FAIL Verdict ends the contract without a
          window.</dd>
          <dt><tt>delivery-first</tt>:</dt><dd>The window opens at
          <tt>delivered</tt>. One Verdict MAY be recorded inside the window without a Challenge, and a second only in answer to one; a FAIL ends the contract, a PASS changes nothing.</dd>
          <dt><tt>no-window</tt>:</dt><dd>No window opens and no Verdict is
          accepted; <tt>delivered</tt> is followed by the terminal
          path.</dd>
        </dl>
        <t>The -01 revision had four release modes. Two of them produce the
        same trace and differed only in which event a profile acts on, which
        is a profile parameter and not a protocol matter. The mapping is in
        <xref target="changes"/>.</t>

        <t>The window opens at the instant of the <tt>window-opened</tt> entry
        and closes at that instant plus <tt>challenge.window_seconds</tt>,
        carried in the entry as <tt>closes_at</tt>. A Facilitator MUST NOT
        accept a Challenge after <tt>closes_at</tt>, MUST NOT extend the
        window for any reason, and MUST NOT record <tt>window-closed</tt>
        while a Challenge is pending.</t>
      </section>

      <section anchor="verdicts"><name>Verdicts</name>
        <t>A Verdict is a signed statement that a Delivery was evaluated
        against the committed instrument, and with what outcome. It is a JSON
        object, media type <tt>application/vnd.pact.verdict+json</tt>, with
        the members in <xref target="dict-verdict"/>, signed once.</t>

        <figure anchor="fig-verdict">
          <name>A Verdict</name>
          <sourcecode type="json" name="verdict.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "Verdict",
  "vtc_id": "vtc_9f2c11",
  "delivery_hash": "sha256:6bcbb831ea27a8754a0df9b44361be12411e45\
   370cb3023331bc8bfbd924fcbe",
  "outcome": "PASS",
  "profile": "acceptance",
  "instrument_hash": "sha256:0bdde1ab6b081d2b4bda580c5393756ae95c\
   10b8351c9c55eb9316416265fc1b",
  "results_hash": "sha256:28d334e0e0e0771eb5708452612ebcc6fbf848e\
   baca540214b4f6d2165688a51",
  "evaluated_at": "2026-11-10T09:14:22Z",
  "signature": {
    "protected": "...",
    "signature": "..."
  }
}
]]></sourcecode>
        </figure>

        <t>The Verifier is the party identified by the <tt>kid</tt> of the
        Verdict's signature. Where the contract names
        <tt>parties.verifier</tt>, a Facilitator MUST refuse a Verdict signed
        by any other party; otherwise it MUST refuse a Verdict whose signer
        does not satisfy <xref target="independence"/>
        (<tt>verifier-not-independent</tt>). It MUST refuse a Verdict for a
        contract with no <tt>delivered</tt> entry
        (<tt>no-recorded-delivery</tt>); one whose <tt>delivery_hash</tt>
        does not match that entry, or whose <tt>profile</tt> or
        <tt>instrument_hash</tt> does not match the contract
        (<tt>verdict-nonconformant</tt>); one received in a state, or under conditions, that the table in <xref target="events"/> does not list for it, or under the
        <tt>no-window</tt> flow (<tt>wrong-state</tt>); and one carrying
        <tt>challenge_hash</tt> that names no pending Challenge, or omitting
        it while the contract is DISPUTED (<tt>verdict-nonconformant</tt>).
        A Verdict recorded while one stands supersedes it, and both stay in the trace; since a Verdict is accepted while one stands only in DISPUTED, only a Verdict that answers a Challenge ever supersedes.</t>

        <t>A Verdict commits to the instrument it ran and to the results it
        produced. Without <tt>instrument_hash</tt> a Verifier could run
        something other than the committed instrument and the contract would
        have no way to tell; that is the substitution attack of
        <xref target="sec-substitution"/>, arriving from the verification
        side.</t>

        <t>Under <tt>verdict-first</tt> a Verifier that never answers would
        leave a contract in DELIVERED forever, and the -01 revision had no
        rule for it. <tt>verification.max_verdict_seconds</tt> bounds the
        wait: when it passes with no Verdict, the Facilitator records
        <tt>verdict-lapsed</tt> and opens the window, so that the contract can
        still be challenged and can still end. What a lapsed Verdict costs
        anyone is the profile's.</t>
      </section>

      <section anchor="challenges"><name>Challenges</name>
        <t>A Challenge is a JSON object, media type
        <tt>application/vnd.pact.challenge+json</tt>, with the members in
        <xref target="dict-challenge"/>, by which a party submits a proof of nonconformance (what optimistic systems call a fraud proof) inside the window. A Facilitator MUST refuse a Challenge
        received when the contract is not in WINDOW_OPEN or DISPUTED, or
        after <tt>closes_at</tt> (<tt>challenge-window-closed</tt>); one
        whose <tt>delivery_hash</tt> does not match the <tt>delivered</tt>
        entry (<tt>object-conflict</tt>); one whose <tt>proof</tt> does not
        conform to the verification profile (<tt>proof-nonconformant</tt>);
        one whose signer it cannot resolve (<tt>signature-invalid</tt>); and
        one signed by the contract's Seller (<tt>unexpected-signer</tt>),
        since a performer's statement against its own Delivery is not a
        proof of nonconformance and the -01 revision left the case open. A Facilitator
        MUST NOT refuse a Challenge on the ground that its signer is the
        contract's Buyer.</t>

        <t>A Challenge that is accepted is evaluated by a party satisfying
        <xref target="independence"/>, whose finding is a Verdict carrying <tt>challenge_hash</tt>; the Challenger's own assertion is not a finding, unless the Challenger is the verifier the contract names, whose Verdict is the finding by definition. A named Verifier that finds its own PASS wrong posts a Challenge and answers it. The Challenger is the party identified by the <tt>kid</tt> of
        the Challenge's signature.</t>

        <t>A capability document MAY advertise <tt>challenge_deposit</tt>. Whether anything must accompany a Challenge, how it is posted and what becomes of it are the terms profile's and the settlement binding's to say; this document carries the member and reads it for no purpose. <xref target="sec-dos"/>
        discusses what a deposit does and does not prevent.</t>

        <figure anchor="fig-challenge">
          <name>A Challenge under the acceptance profile</name>
          <sourcecode type="json" name="challenge.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "Challenge",
  "vtc_id": "vtc_9f2c11",
  "delivery_hash": "sha256:6bcbb831ea27a8754a0df9b44361be12411e45\
   370cb3023331bc8bfbd924fcbe",
  "proof": {
    "profile": "acceptance",
    "instrument_hash": "sha256:0bdde1ab6b081d2b4bda580c5393756ae9\
   5c10b8351c9c55eb9316416265fc1b",
    "results_hash": "sha256:7f05a60223e24ca9393e0c241d0448cb5f39e\
   5edb71c117fb7d3d593d5861b40",
    "results_uri": "https://watch.example/o/a91e",
    "failing_checks": ["schema_valid_rate", "row_count_min"]
  },
  "costs": {
    "amount": "1.20",
    "currency": "USDC"
  },
  "signature": {
    "protected": "...",
    "signature": "..."
  }
}
]]></sourcecode>
        </figure>
      </section>

      <section anchor="disputes"><name>Disputes and Lapses</name>
        <t>A contract with a pending Challenge is DISPUTED. It leaves that
        state when a Verdict answers the Challenge, or when
        <tt>challenge.max_dispute_seconds</tt> pass with none and the
        Facilitator records <tt>dispute-lapsed</tt>. A lapsed Challenge
        changes no Verdict: the Verdict that stood before it stands after it.
        A Facilitator MAY accept further Challenges while DISPUTED, each of
        which is pending on its own account, and MUST NOT record
        <tt>window-closed</tt> until none is pending.</t>

        <figure anchor="fig-dispute">
          <name>The dispute path: a Challenge answered by a FAIL Verdict</name>
          <artwork type="ascii-art"><![CDATA[
  Buyer        Facilitator       Verifier      Challenger
    |              |                 |               |
    |              |<-- POST Verdict |               |
    |              |   [ verdict PASS ]              |
    |              |   [ window-opened ]             |
    |              |<------------- POST Challenge ---|
    |              |-- Status ---------------------->|
    |              |   [ challenge ]                 |
    |              |-- Challenge + Delivery -------->|
    |              |<-- POST Verdict |               |
    |              |   [ verdict FAIL, answers,      |
    |              |     supersedes ]                |
    |              |   [ children-final ]            |
    |              |   [ terminal SETTLED,           |
    |              |     challenge_upheld true ]     |
    |<- Outcome ---|                                 |
        ]]></artwork>
        </figure>

        <t>The figure carries no rank, no waterfall and no amount. The -01
        revision drew five numbered transfers on this diagram; every one of
        them is now a line in a profile's schedule, keyed to the
        <tt>terminal</tt> entry, and reported in <tt>terms_result</tt>.</t>
      </section>
    </section>

    <section anchor="wellknown"><name>Facilitator Capability Discovery</name>
      <t>Before a Buyer and Seller can co-sign a VTC they must agree on a
      Facilitator and know what it implements. This document registers one
      well-known URI for that purpose, per <xref target="RFC8615"/>. A client SHOULD fetch the document again before it proposes, since nothing in it survives the Facilitator withdrawing a profile.</t>

      <t>This is deliberately narrower than agent discovery, which is the
      subject of separate work and is not restated here. What is discovered
      is one service's capabilities, not an agent's identity, skills or
      endpoints.</t>

      <t>A Facilitator SHOULD publish a JSON document, media type
      <tt>application/vnd.pact.facilitator+json</tt>, with the members in
      <xref target="dict-capabilities"/>, at the path <tt>/.well-known/pact-facilitator</tt> of its origin: for an <tt>https:</tt> identifier that origin, and for a <tt>did:web</tt> identifier <tt>https://</tt> followed by the host the method encodes. The document MUST
      be served over HTTPS. It MUST be signed, and the signature MUST verify
      against a key bound to the identifier in <tt>facilitator</tt>. An
      unsigned capability document is not usable for contract formation,
      because <tt>terms_profiles</tt> determines which terms a party can name
      and expect to be evaluated.</t>

      <figure anchor="fig-wellknown">
        <name>https://settle.example/.well-known/pact-facilitator</name>
        <sourcecode type="json" name="pact-facilitator.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "FacilitatorCapabilities",
  "facilitator": "did:web:settle.example",
  "issued_at": "2026-11-01T09:00:00Z",
  "settlement_bindings": [
    {
      "id": "https://settle.example/bindings/ledger-1",
      "networks": ["eip155:8453"],
      "assets": ["USDC"]
    }
  ],
  "flows": ["verdict-first", "delivery-first"],
  "verification_profiles": ["acceptance"],
  "terms_profiles": [
    {
      "id": "tag:laxsharma79@gmail.com,2026:pact:bonded-restituti\
   on",
      "profile_hash": "sha256:9fff6e3f3d99b26eb437a84b9de5b35124c\
   cf6956e835df2653b99d71d363a68"
    }
  ],
  "max_contract_value": {
    "amount": "50000.00",
    "currency": "USDC"
  },
  "endpoints": {
    "contract": "https://settle.example/pact/v2/contracts",
    "delivery": "https://settle.example/pact/v2/deliveries",
    "verdict": "https://settle.example/pact/v2/verdicts",
    "challenge": "https://settle.example/pact/v2/challenges",
    "outcome": "https://settle.example/pact/v2/outcomes"
  },
  "signature": {
    "protected": "...",
    "signature": "..."
  }
}
]]></sourcecode>
      </figure>

      <t>A client MUST NOT infer any capability from the absence of a member.
      A client may hold a Facilitator\'s capability document by prior arrangement rather than fetch it from the well-known path; the path is a convenience, the document is not, since a Facilitator refuses what its document does not advertise (<xref target="terms"/>, <xref target="ep-propose"/>). A Facilitator lists only the terms profiles whose vectors (<xref target="terms-result"/>) its own implementation reproduces.</t>
    </section>

    <section anchor="profiles"><name>Verification Profiles</name>
      <t>A contract names both a <tt>tier</tt>, which says what class of
      evidence is produced, and a <tt>profile</tt>, which says what is
      actually done to check it. Four tier labels are used in this document:
      <tt>T0-reexec</tt>, deterministic re-execution; <tt>T1-tee</tt>,
      hardware attestation per <xref target="RFC9334"/>; <tt>T2-zkml</tt>, a
      proof of inference; and <tt>T3-jury</tt>, staked arbitration. Tiers are
      a vocabulary. Three profiles are defined below by name; any other is
      identified by a URI under its definer's control, and this document
      creates no registry for them. The distinction matters because the tier
      name does not determine how much checking a contract gets and the
      profile largely does.</t>

      <t>Consider one task, a bulk data transformation, under two profiles at
      the same nominal tier. Re-executing the whole computation and comparing outputs costs about what performing it cost; running a committed acceptance instrument against the delivered artifact costs a small fraction of that. Those are the author's estimates, not measurements (the measurements <xref target="implstatus"/> mentions are of the protocol, not the work), and the two can differ by orders of magnitude in what checking costs relative to the price. A terms profile
      may make that ratio matter; this document requires of a verification profile the five statements listed after the profiles below, one of which is an order-of-magnitude estimate of its cost relative to the work, since a figure nobody can estimate is a figure nobody can use.</t>

      <t>Implementations SHOULD select the cheapest profile that detects the
      failures they actually care about, rather than the strongest-sounding
      one. A committed acceptance instrument that is adequate is worth more
      than a re-execution profile that nobody can afford to run.</t>

      <dl>
        <dt><tt>acceptance</tt>:</dt><dd>Run the instrument committed by
        <tt>criteria_hash</tt> against the Delivery. The proof of nonconformance is a
        failing evaluation. Deterministic by construction, since the
        instrument is fixed before work begins. Cost: a small fraction of the work for a data transformation, by estimate.</dd>
        <dt><tt>bisection</tt>:</dt><dd>Interactive narrowing to a single
        disputed step, which is then checked directly. Cost grows
        logarithmically in the size of the computation rather than
        linearly.</dd>
        <dt><tt>full-reexec</tt>:</dt><dd>Re-execute and compare byte for
        byte. Sound only where the computation is deterministic and the
        environment is pinned; see <xref target="sec-determinism"/>. Cost:
        approximately the work.</dd>
      </dl>

      <t>A verification profile usable with this document states five
      things: what artefact is evaluated and against what; what constitutes a
      valid proof of nonconformance, including whether absence of evidence
      is one; that its proof can be evaluated by a party other than the
      Seller; its cost relative to the work, to order of magnitude; and
      whether it is deterministic and with what tolerance
      (<xref target="sec-determinism"/>). <tt>acceptance</tt> states these below; the other two are sketches that a full profile document completes; a profile defined elsewhere states them in its own document.</t>

      <section anchor="independence"><name>Verifier Independence and Identifier Normalization</name>
        <t>Independence is a relation between the party that signs a Verdict
        and the parties to the contract. It MUST be derived by the Facilitator
        and MUST NOT be satisfied by a field in which a record declares itself independent. Rules of this kind are stated for evaluation after the fact in <xref target="X402COMPLIANCE"/>; this document binds them at contract formation. A Facilitator MUST refuse a Verdict whose signer
        is, after normalization, the contract's Buyer, Seller or Facilitator,
        and MUST refuse a contract whose <tt>parties.verifier</tt> is any of
        those three (<tt>verifier-not-independent</tt>). The last case is the
        rule the -01 revision stated as a prohibition on the Facilitator's
        conduct; it is an identifier comparison and is stated as one.</t>

        <t>Party identifiers MUST be normalized before comparison, and the
        normalization MUST fold toward identifying the same party: strip
        leading and trailing whitespace; lower-case the scheme and, for
        <tt>did:web</tt> and <tt>https</tt> identifiers, the host; remove any
        fragment (a "#" and everything after it) and any trailing "/" or
        ".". The path of a <tt>did:web</tt> identifier is case sensitive and
        MUST NOT be folded. Percent-encoding MUST NOT be decoded, since an
        open-ended decoder is its own attack surface. An identifier that does
        not parse after normalization is not evaluable and MUST NOT be
        treated as outside the parties. An independence claim reaches
        exactly as far as the record's own commitments.</t>
      </section>
    </section>

    <section anchor="trees"><name>Contract Trees</name>
      <t>An agent that accepts work may subcontract part of it. The
      subcontract is an ordinary PACT contract whose Buyer is the parent's
      Seller. What this section adds is the binding between the two, in both
      directions and across Facilitators, so that a parent's Outcome Record
      can commit to its children's and a reader of the parent's record can
      find and check them.</t>

      <figure anchor="fig-tree">
        <name>A contract tree. B is Seller above and Buyer below.</name>
        <artwork type="ascii-art"><![CDATA[
                A (Buyer)
                    |
                vtc_9f2c11      at did:web:settle.example
                    |
                B (Seller)
                    |
        +-----------+-----------+
        |                       |
    vtc_c1a2                vtc_c2b7    at did:web:other.example
        |                       |
    C (Seller)              D (Seller)
        ]]></artwork>
      </figure>

      <section anchor="tree-binding"><name>Binding a Child to Its Parent</name>
        <t>A subcontract carries <tt>parent</tt>, a top-level member with the
        parent's <tt>vtc_id</tt>, <tt>vtc_hash</tt> and
        <tt>facilitator</tt>. Because <tt>parent</tt> is inside the bytes both
        parties sign, the child's Buyer signature is itself the authorisation
        to attach that child to that parent. The -01 revision carried this
        member inside the member it has since removed; it is structural and
        is now where structure is.</t>

        <t>The child's Facilitator need not resolve the parent, and across
        Facilitators it often cannot. It MUST record <tt>parent</tt> as
        signed, and MUST allow the identifier in <tt>parent.facilitator</tt>
        to retrieve the child's Status and Outcome Record
        (<xref target="sec-retrieval"/>). The check that the child's Buyer is
        the parent's Seller is made where the parent is: at registration.</t>

        <t>The -01 revision required a Facilitator to reject a child whose
        parent chain contained the child's own identifier and to enforce a
        maximum depth. Neither rule survives, because neither is needed. A
        child commits to its parent's digest, and the parent's digest exists
        before the child is signed, so no contract can commit to a descendant
        and a cycle cannot be formed; depth is bounded by whatever a
        Facilitator is willing to register, and no Facilitator sees more
        than one level.</t>
      </section>

      <section anchor="tree-registration"><name>Registration and Children Final</name>
        <t>The parent's Facilitator learns of a child when the child's co-signed
        contract is posted to the parent's children resource
        (<xref target="endpoints"/>). Any holder of that contract may post it;
        the registration is authenticated by the child's own signatures, and
        the child's Buyer, which is the parent's Seller, is the party that
        ordinarily holds it. A registered child is identified at the parent's
        venue by its digest, so its <tt>id</tt> need not be unique there.</t>

        <t>A Facilitator MUST refuse a registration, with the problem type
        named, when: the body is not a valid contract (<xref target="conf-rules"/>, the
        rules on members and signatures; its terms and deadline are its own
        Facilitator's to check); its <tt>parent.vtc_hash</tt> is not the
        parent's digest or its <tt>parent.facilitator</tt> is not this
        Facilitator (<tt>parent-unresolvable</tt>); its
        <tt>parties.buyer</tt> is not the parent's <tt>parties.seller</tt>
        after normalization (<tt>parent-unresolvable</tt>); its latest
        finality instant is not earlier than the parent's
        (<xref target="tree-timing"/>, <tt>finality-ordering-violation</tt>);
        or the parent is terminal (<tt>wrong-state</tt>). An accepted
        registration is recorded as <tt>child-registered</tt>.</t>

        <artwork type="ascii-art"><![CDATA[
   child.parties.buyer  ==  parent.parties.seller
   child.parent.vtc_hash  ==  digest(parent)
        ]]></artwork>

        <t>Without the first check any party may name any contract as its
        parent. The attack is cheap and asymmetric: name a competitor's
        contract as parent, subcontract a trivial task to yourself, fail it,
        and put a failed child under the competitor's record. The -00
        revision carried the parent as a bare string with no hash and no
        check, so the attack cost one signature.</t>

        <t>A child becomes final for its parent when the parent's Facilitator
        holds the child's Outcome Record. It may obtain that record itself,
        by retrieving it from the child's Facilitator, or receive it by a POST to the child's entry under that resource
        (<xref target="endpoints"/>). Either way the Facilitator MUST verify
        the record's Facilitator signature against a key bound to the
        identifier the registration recorded, and MUST verify that its <tt>vtc_hash</tt> is the registered child's digest, refusing a record that fails either check (<tt>child-outcome-invalid</tt>), before recording <tt>child-final</tt>. Where the child's latest finality instant passes
        with no record held, the Facilitator records
        <tt>child-unresolved</tt>. <tt>children-final</tt> follows when every
        registered child has one entry or the other, and the parent's
        <tt>terminal</tt> entry follows that.</t>

        <t>A child that is never registered does not exist for the parent.
        Nothing in this document compels a parent's Seller to register a
        child, and <xref target="sec-parent"/> says what that means.</t>
      </section>

      <section anchor="tree-timing"><name>Finality Is Bottom-Up</name>
        <t>A parent's Outcome Record MUST carry
        <tt>children_merkle_root</tt> over the Outcome Records of its
        registered children (<xref target="merkle"/>), so a parent cannot be
        recorded until its children have been, and the parent waits in
        AWAITING_CHILDREN until they are. For that wait to be bounded, every
        child must be able to reach a terminal state, or be declared
        unresolved, before its parent needs it.</t>

        <t>The latest finality instant L of a contract is computed from its
        own members and nothing else:</t>

        <artwork type="ascii-art"><![CDATA[
   verdict-first:  L = task.deadline
                       + verification.max_verdict_seconds
                       + challenge.window_seconds
                       + challenge.max_dispute_seconds
   delivery-first: L = task.deadline
                       + challenge.window_seconds
                       + challenge.max_dispute_seconds
   no-window:      L = task.deadline
        ]]></artwork>

        <t>Every wait in <xref target="tab-events"/> is bounded by one of
        those members, and a Challenge can only be received before
        <tt>closes_at</tt>, so no sequence of events carries a contract past
        its L except waiting for its own children. A Facilitator MUST refuse
        to register a child unless L(child) is earlier than L(parent), and
        MUST record <tt>child-unresolved</tt> for a registered child no later
        than the first opportunity after L(child) if it holds no Outcome
        Record for it by then.</t>

        <t>The -01 revision compared the child's latest finality with the
        parent's earliest window close, and bounded neither: under its
        default mode the first Verdict could take forever, so the inequality
        guaranteed nothing. <tt>max_verdict_seconds</tt> is what makes L
        finite, and the waiting state is what makes the rule honest about
        the case where a child is late anyway.</t>

        <figure anchor="fig-finality">
          <name>Bottom-up finality</name>
          <artwork type="ascii-art"><![CDATA[
 parent |== work ==|= verdict =|= window =|= dispute =|
                                                      ^ L(parent)
 child  |== work ==|= vrd =|= win =|= dsp =|
                                           ^ L(child)

        a child is registered only where L(child) < L(parent)
          ]]></artwork>
        </figure>

        <t>What a child's outcome means for its parent is not stated here.
        No entry in a parent's schedule depends on any child's outcome unless
        the named terms profile says so; what this document guarantees is
        that the parent's Outcome Record commits to whichever child records
        exist when it is issued and names, in its trace, every child that
        does not.</t>
      </section>
    </section>

    <section anchor="status"><name>The Contract Status</name>
      <t>A Contract Status is a JSON object, media type
      <tt>application/vnd.pact.status+json</tt>, with the members in
      <xref target="dict-status"/>, signed once by the Facilitator. It is the
      body of every successful response to a POST in
      <xref target="endpoints"/> and of a GET on a contract resource. It
      carries the contract's state and the trace recorded so far.</t>

      <figure anchor="fig-status">
        <name>A Contract Status after the Verdict of <xref target="fig-verdict"/></name>
        <sourcecode type="json" name="status.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "ContractStatus",
  "vtc_id": "vtc_9f2c11",
  "vtc_hash": "sha256:7af52ecee9592740ca9a8b3e0bbd097cf765ff49493\
   04c2c855ca1d746ba6459",
  "state": "WINDOW_OPEN",
  "trace": [
    {
      "event": "accepted",
      "at": "2026-11-01T10:00:00Z",
      "object": "sha256:7af52ecee9592740ca9a8b3e0bbd097cf765ff494\
   9304c2c855ca1d746ba6459"
    },
    {
      "event": "funded",
      "at": "2026-11-01T10:00:00Z"
    },
    {
      "event": "delivered",
      "at": "2026-11-10T08:30:12Z",
      "object": "sha256:6bcbb831ea27a8754a0df9b44361be12411e45370\
   cb3023331bc8bfbd924fcbe"
    },
    {
      "event": "verdict",
      "at": "2026-11-10T09:14:30Z",
      "object": "sha256:1ac94d72dbdd1f51e523ecddb3a3b360703976215\
   b13324485db355c948adfc0",
      "signer": "did:web:audit.example#k1",
      "outcome": "PASS"
    },
    {
      "event": "window-opened",
      "at": "2026-11-10T09:14:30Z",
      "closes_at": "2026-11-10T10:14:30Z"
    }
  ],
  "issued_at": "2026-11-10T09:14:30Z",
  "signature": {
    "protected": "...",
    "signature": "..."
  }
}
]]></sourcecode>
      </figure>

      <t>Two rules make a Status worth keeping. A Facilitator MUST issue a Status for every POST it accepts, carrying the entry that request
      caused, so that the requester holds a signed receipt of what was
      recorded and when. And the trace in every Status a Facilitator issues
      for a contract MUST be a prefix of the trace in every later one; two
      Statuses for one contract that violate that are evidence of
      equivocation, and <xref target="sec-facilitator"/> says what a holder
      can do with it. The Outcome Record's trace is the last such
      sequence.</t>

      <t>The -01 revision returned the posted object with a <tt>state</tt>
      member added to it, which no schema admitted and no signature covered.
      The Status replaces that: the posted object is not echoed, and
      everything in the response is inside the Facilitator's signature.</t>
    </section>

    <section anchor="outcomes"><name>Outcome Records</name>
      <t>An Outcome Record records what a contract did. It is a JSON object,
      media type <tt>application/vnd.pact.outcome+json</tt>, with the members
      in <xref target="dict-outcome"/>. It is the input to any reputation
      system built on PACT, though this document defines no such system and
      takes no position on how the records should be weighed.</t>

      <t>A Facilitator MUST issue exactly one Outcome Record for every
      contract that reaches a terminal state, including SETTLED and
      ABANDONED, MUST sign it, and MUST NOT require the signature of any
      other party on it. A Facilitator MUST serve the bytes of the record it signed rather than sign it again on retrieval; under a randomized signature scheme a second signing would produce a second record with a different digest. The -00 revision's record needed the signature of
      the party it recorded against, which made a reputation layer built on
      it structurally incapable of recording a loss. The Facilitator
      signature is what makes the record evidence: without it the record is
      a claim by interested parties about themselves, and with it a
      fabricated history requires a Facilitator's key rather than two
      identities.</t>

      <figure anchor="fig-outcome">
        <name>An Outcome Record for a contract that reached SETTLED on an upheld Challenge</name>
        <sourcecode type="json" name="outcome.json"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

{
  "pact": "0.2",
  "type": "OutcomeRecord",
  "vtc_id": "vtc_9f2c11",
  "vtc_hash": "sha256:7af52ecee9592740ca9a8b3e0bbd097cf765ff49493\
   04c2c855ca1d746ba6459",
  "parties": {
    "buyer": "did:web:buyer.example:agents:procure-1",
    "seller": "did:web:dataforge.example:agents:etl-3",
    "facilitator": "did:web:settle.example",
    "verifier": "did:web:audit.example"
  },
  "outcome": {
    "state": "SETTLED",
    "challenge_upheld": true
  },
  "work_hash": "sha256:a26dc519a79ac70835a71ea58c9e34f0625778aee2\
   80a3170b6b9a5037036ef0",
  "trace": [
    {
      "event": "accepted",
      "at": "2026-11-01T10:00:00Z",
      "object": "sha256:7af52ecee9592740ca9a8b3e0bbd097cf765ff494\
   9304c2c855ca1d746ba6459"
    },
    {
      "event": "funded",
      "at": "2026-11-01T10:00:00Z"
    },
    {
      "event": "delivered",
      "at": "2026-11-10T08:30:12Z",
      "object": "sha256:6bcbb831ea27a8754a0df9b44361be12411e45370\
   cb3023331bc8bfbd924fcbe"
    },
    {
      "event": "verdict",
      "at": "2026-11-10T09:14:30Z",
      "object": "sha256:1ac94d72dbdd1f51e523ecddb3a3b360703976215\
   b13324485db355c948adfc0",
      "signer": "did:web:audit.example#k1",
      "outcome": "PASS"
    },
    {
      "event": "window-opened",
      "at": "2026-11-10T09:14:30Z",
      "closes_at": "2026-11-10T10:14:30Z"
    },
    {
      "event": "challenge",
      "at": "2026-11-10T09:40:00Z",
      "object": "sha256:2ac4e296e79f681446a43e55aef572ff0bfd2093e\
   c2c6795962e67a6e2ff55ff",
      "signer": "did:web:watch.example#k1",
      "costs": {
        "amount": "1.20",
        "currency": "USDC"
      }
    },
    {
      "event": "verdict",
      "at": "2026-11-10T09:58:05Z",
      "object": "sha256:10d537e7b8face8bd7695541d36d32568394a5319\
   7653280c404e2d84a63d46d",
      "signer": "did:web:audit.example#k1",
      "outcome": "FAIL",
      "answers": "sha256:2ac4e296e79f681446a43e55aef572ff0bfd2093\
   ec2c6795962e67a6e2ff55ff",
      "supersedes": "sha256:1ac94d72dbdd1f51e523ecddb3a3b36070397\
   6215b13324485db355c948adfc0"
    },
    {
      "event": "children-final",
      "at": "2026-11-10T09:58:05Z"
    },
    {
      "event": "terminal",
      "at": "2026-11-10T09:58:05Z",
      "state": "SETTLED",
      "challenge_upheld": true
    }
  ],
  "terms_result": {
    "profile": "tag:laxsharma79@gmail.com,2026:pact:bonded-restit\
   ution",
    "profile_hash": "sha256:9fff6e3f3d99b26eb437a84b9de5b35124ccf\
   6956e835df2653b99d71d363a68",
    "currency": "USDC",
    "transfers": [
      {
        "event": 8,
        "from": "...",
        "to": "...",
        "amount": "...",
        "code": "..."
      }
    ]
  },
  "signatures": [
    {
      "protected": "...",
      "signature": "..."
    }
  ]
}
]]></sourcecode>
      </figure>

      <t>The record carries one signature, the Facilitator's. The Seller did
      not consent to this record and its consent is not required. The
      <tt>transfers</tt> entries are elided here because their content is the
      profile's; <xref target="appendix-profile"/> shows them filled in for
      its own profile.</t>

      <section anchor="terms-result"><name>The Terms Result</name>
        <t><tt>terms_result</tt> reports what the named profile's schedule
        produced over the whole trace. It carries the profile identifier and
        hash copied from the contract, the currency, and <tt>transfers</tt>:
        an array of entries, in the order the schedule produced them, each
        with <tt>event</tt> (the zero-based index of the trace entry at which
        the schedule emitted it), <tt>from</tt> and <tt>to</tt> (account
        names as the profile defines them), <tt>amount</tt>, and
        <tt>code</tt> (a string the profile defines, naming the schedule
        line that produced the entry).</t>

        <t>This document defines the form of the list and two arithmetic
        facts about it, and nothing about what any entry means. Over the internal accounts the profile declares (<xref target="terms"/>), which open empty: no entry takes from an account more than
        that account holds at that point in the list; and after the last
        entry every account the profile marks internal holds zero. The two facts are constraints on a profile, checked against its vectors before a Facilitator lists it (<xref target="wellknown"/>); a Facilitator MUST NOT sign an Outcome Record whose list breaks either, since such a list shows the profile it evaluates to be defective, and MUST NOT sign one whose list differs from what the profile's schedule produces for the record's own trace. Any party
        holding the contract, the trace and the profile's bundle can
        recompute the list; that is the property the experiment in
        <xref target="experiment"/> depends on.</t>

        <t><tt>vectors.json</tt> in a profile's bundle is an array of
        objects, each with <tt>name</tt>, <tt>contract</tt> (a VTC, or the
        members of one the schedule reads), and then either <tt>trace</tt> (a complete
        trace) with <tt>transfers</tt> (the list the schedule produces for
        it) and <tt>accounts</tt> (the profile's internal accounts, which open empty and must close empty), or <tt>admission</tt> (an object carrying either <tt>admitted</tt>, true, or <tt>refused</tt>, the problem type the admission rule answers with for that contract). A Facilitator MUST reproduce every vector of a profile before
        listing that profile in its capability document
        (<xref target="wellknown"/>), which is the only conformance
        requirement this document places on a profile implementation.</t>
      </section>

      <section anchor="merkle"><name>The Children Merkle Root</name>
        <t>Let D be the list of 32-byte SHA-256 digests of the Outcome Record
        of each registered child for which the Facilitator holds one, each
        computed over the record's canonical form including its
        <tt>signatures</tt> member, sorted ascending as byte strings.
        <tt>children_merkle_root</tt> is MTH(D) exactly as defined in
        <xref target="RFC9162"/> Section 2.1.1, with SHA-256 as the hash: a
        leaf is SHA-256(0x00 || d), an interior node is SHA-256(0x01 || left
        || right), and for n greater than one the list is split at k, the
        largest power of two smaller than n. The shape is therefore fixed by
        n alone, and two implementations that agree on D agree on the
        root.</t>
        <t>The domain separation is not optional, because the prefixes are what make MTH the function <xref target="RFC9162"/> defines, and a second implementation must compute the same root. The second-preimage attack the prefixes guard against, a leaf input chosen to equal an interior node's input, needs a leaf of that input's length; the fixed 32-byte digests in D cannot supply one, so here the prefixes buy agreement with the RFC rather than a defence the construction would otherwise lack.</t>
        <t>The member is present when at least one child is registered and
        absent otherwise; it MUST NOT be present with an empty or zero value,
        which would be indistinguishable from a tree whose children were
        withheld. Where every registered child is unresolved D is empty and
        the root is MTH of the empty list, SHA-256 of the empty string; the
        <tt>child-unresolved</tt> entries in the trace say which records the
        root does not cover. The -01 revision did not say whether a leaf covered the record's signatures; this revision says it does, so a record cannot be re-signed without changing the root.</t>
      </section>
    </section>

    <section anchor="endpoints"><name>Protocol Endpoints</name>
      <t>This section specifies the operations a Facilitator exposes. This document fixes no base URI; each is discovered from the <tt>endpoints</tt> member of the capability document
      (<xref target="wellknown"/>), so a Facilitator may mount them anywhere
      on its origin.</t>

      <dl>
        <dt>Propose a contract:</dt><dd>POST <tt>{contract}</tt>; body, a
        contract; 201 with a Status.</dd>
        <dt>Retrieve a contract's status:</dt><dd>GET
        <tt>{contract}/{id}</tt>; 200 with a Status.</dd>
        <dt>Register a child:</dt><dd>POST
        <tt>{contract}/{id}/children</tt>; body, the child's contract; 201
        with a Status.</dd>
        <dt>Supply a child's outcome:</dt><dd>POST
        <tt>{contract}/{id}/children/{child_hash}</tt>, where <tt>child_hash</tt> is the digest by which the registration identifies the child; body, the child's Outcome Record; 200 with a Status. This resource is keyed by digest, so the id rule of <xref target="ep-idempotency"/> does not apply to it.</dd>
        <dt>Submit a Delivery:</dt><dd>POST <tt>{delivery}</tt>; body, a
        Delivery; 202 with a Status.</dd>
        <dt>Record a Verdict:</dt><dd>POST <tt>{verdict}</tt>; body, a
        Verdict; 201 with a Status.</dd>
        <dt>Open a Challenge:</dt><dd>POST <tt>{challenge}</tt>; body, a
        Challenge; 202 with a Status.</dd>
        <dt>Retrieve an Outcome Record:</dt><dd>GET
        <tt>{outcome}/{id}</tt>; 200 with the Outcome Record.</dd>
      </dl>

      <t>A request naming a contract the Facilitator does not hold is refused
      as <tt>unknown-contract</tt> (404). A body larger than the Facilitator
      accepts is refused as <tt>payload-too-large</tt> (413). A failure inside
      the Facilitator is reported as <tt>internal-error</tt> (500), the one
      problem type that names no rule. A GET of an Outcome Record before the
      <tt>terminal</tt> entry is refused as <tt>wrong-state</tt>.</t>

      <t>All requests and responses use the media types defined in
      <xref target="iana"/>. All requests MUST be made over HTTPS, following
      the recommendations of <xref target="RFC9325"/>. Status codes are as
      defined in <xref target="RFC9110"/>. A Delivery and a Challenge are answered <tt>202 (Accepted)</tt> because, in the sense of <xref target="RFC9110"/> Section 15.3.3, their processing is not complete when the response is sent: what either record leads to may depend on a Verdict the Facilitator does not itself produce. A contract and a Verdict are answered <tt>201 (Created)</tt>; the contract is the resource the Location header names, and a Verdict, to which this document gives no resource of its own, is identified by the digest the Status in the response carries.</t>

      <t>A Facilitator authenticates the sender of a POST by the signature on
      the body, and by nothing else in this document: it MUST reject a
      Delivery not signed by the contract's Seller, a Verdict not signed by a
      party admissible under <xref target="verdicts"/>, a Challenge whose
      signer it cannot resolve, and a child registration or child outcome
      whose body does not verify as <xref target="tree-registration"/>
      requires. A Facilitator MAY require an HTTP-layer authentication in
      addition. Retrieval is discussed in <xref target="sec-retrieval"/>.</t>

      <section anchor="ep-propose"><name>Proposing a Contract</name>
        <t>The request body is a VTC carrying the signatures of both parties
        required to sign it. A Facilitator MUST perform the checks in
        <xref target="conformance"/>, <xref target="terms"/> and
        <xref target="independence"/> before creating the resource, MUST
        refuse a contract whose <tt>parties.facilitator</tt> is not itself or
        whose <tt>price.settlement</tt>, network or currency it does not
        advertise (<tt>facilitator-mismatch</tt>,
        <tt>settlement-unsupported</tt>), and MUST refuse otherwise with the
        problem type that names the rule. <tt>settlement-unsupported</tt> also covers a price stated in a currency other than <tt>max_contract_value</tt>'s and a price above it; a verification profile the Facilitator does not list is refused as <tt>settlement-unsupported</tt>.</t>

        <sourcecode type="http-message"><![CDATA[
POST /pact/v2/contracts HTTP/1.1
Host: settle.example
Content-Type: application/vnd.pact.contract+json

{ "pact": "0.2", "type": "VerifiableTaskContract",
  "id": "vtc_9f2c11", ... }
        ]]></sourcecode>

        <sourcecode type="http-message"><![CDATA[
HTTP/1.1 201 Created
Location: /pact/v2/contracts/vtc_9f2c11
Content-Type: application/vnd.pact.status+json

{ "pact": "0.2", "type": "ContractStatus",
  "vtc_id": "vtc_9f2c11", "state": "ACCEPTED",
  "trace": [ { "event": "accepted", ... } ], ... }
        ]]></sourcecode>
      </section>

      <section anchor="ep-idempotency"><name>Idempotency</name>
        <t>Every object this protocol carries is committed by the digest of
        its own canonical form, so no separate idempotency key is needed and
        none is defined; the general mechanism of
        <xref target="I-D.ietf-httpapi-idempotency-key-header"/> solves a
        problem this protocol does not have. A Facilitator MUST treat a POST
        whose body has a digest it has already accepted as a request for the
        existing resource, and MUST respond <tt>200 (OK)</tt> with the
        current Status rather than creating a second resource or reporting a
        conflict.</t>

        <t>Where a POST carries the same object <tt>id</tt> as an existing
        resource but a different digest, the Facilitator MUST respond
        <tt>409 (Conflict)</tt> (<tt>object-conflict</tt>). Retrying a submission is therefore safe when the same bytes are resent, and altering one never is. A record signed afresh is a different record with a different digest, not a retry: ECDSA signatures are randomized unless produced as <xref target="RFC6979"/> describes, so a client signing with ES256 or ES384 SHOULD sign deterministically or keep the bytes it sent and resend those.</t>
      </section>

      <section anchor="ep-errors"><name>Error Responses</name>
        <t>A Facilitator MUST report failures using
        <xref target="RFC9457"/> problem details, media type
        <tt>application/problem+json</tt>, with a <tt>type</tt> from
        <xref target="iana-problems"/> for a rule in this document, or from
        the profile's own namespace for a rule in a terms profile. A problem
        arising from a rule in this document MUST carry <tt>section</tt>, the
        number of the section stating the rule. A problem arising from a
        rule in a terms profile MUST carry <tt>profile</tt> and
        <tt>profile_section</tt> instead, since <tt>section</tt> cannot name
        a rule outside this document. Error responses name the rule that was
        violated, because a conformance failure a caller cannot locate is a
        failure of the specification.</t>

        <sourcecode type="http-message"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

HTTP/1.1 422 Unprocessable Content
Content-Type: application/problem+json

{
  "type":   "tag:laxsharma79@gmail.com,2026:pact:problem:signatur\
   es-unordered",
  "title":  "Signature set not sorted",
  "status": 422,
  "detail": "the second entry's kid sorts before the first's afte\
   r normalization.",
  "section": "14.1"
}
        ]]></sourcecode>
      </section>

      <section anchor="ep-flow"><name>Exchange</name>
        <figure anchor="fig-http">
          <name>HTTP exchange for the flow in <xref target="fig-flow"/></name>
          <artwork type="ascii-art"><![CDATA[
 Buyer/Seller            Facilitator             Verifier
      |                       |                      |
      |-- POST {contract} --->|                      |
      |<-- 201 Status --------|                      |
      |                       |                      |
      |-- POST {delivery} --->|                      |
      |<-- 202 Status --------|                      |
      |                       |                      |
      |                       |-- GET work_uri ----->|
      |                       |<-- POST {verdict} ---|
      |                       |-- 201 Status ------->|
      |                       |                      |
      |-- GET {contract}/id ->|                      |
      |<-- 200 Status --------|                      |
      |                       |                      |
      |-- GET {outcome}/id -->|                      |
      |<-- 200 Outcome -------|                      |
          ]]></artwork>
        </figure>
      </section>
    </section>

    <section anchor="conformance"><name>Conformance</name>
      <t>Every rule a PACT conformance checker enforces is stated in this
      document as normative text. This section collects the rules that a
      schema language cannot express, so that an implementation built from
      this document alone passes a conformance suite built from it. A rule
      that lives only in a test suite is not a requirement, and an implementer
      who cannot find it in the specification will not implement it.</t>

      <section anchor="conf-sig"><name>Signatures</name>
        <t>Every signature carried by a VTC, Delivery, Verdict, Challenge,
        Status, Outcome Record or capability document has, for each signer, the form of one signature object of the JWS <xref target="RFC7515"/> General JSON Serialization, Section 7.2.1 of that document, with the payload detached as its Appendix F describes. The payload is BASE64URL of the JCS-canonical
        bytes of the object with the signing member removed, so the JWS
        Signing Input is ASCII(BASE64URL(UTF8(protected)) || "." ||
        BASE64URL(JCS(object))) exactly as Section 5.1 of
        <xref target="RFC7515"/> defines it. The payload is never
        transmitted; a verifier reconstructs it from the object it holds, and
        verifies over the protected header exactly as transmitted, never
        over a header it re-serialized. The following constraints apply.</t>
        <ul>
          <li>The protected header MUST carry <tt>alg</tt>, <tt>kid</tt> and
          <tt>typ</tt>.</li>
          <li><tt>alg</tt> MUST be <tt>Ed25519</tt> <xref target="RFC9864"/> with an Ed25519 key, or <tt>ES256</tt> or <tt>ES384</tt> <xref target="RFC7518"/> with a P-256 or P-384 key. A verifier MUST reject any other value, including the polymorphic <tt>EdDSA</tt> identifier of <xref target="RFC8037"/> that <xref target="RFC9864"/> deprecates, and MUST reject <tt>none</tt> (<tt>algorithm-not-permitted</tt>). Absent
          an allowlist an attacker selects the algorithm, which permits both
          unsigned acceptance and confusion of a public key for a symmetric
          secret.</li>
          <li><tt>kid</tt> MUST appear inside the protected header and MUST
          NOT be carried as a sibling of it. A key identifier outside the
          signed bytes is rewritable in transit, which allows an attacker who
          can publish a key document to re-attribute a genuine signature to
          itself.</li>
          <li>The protected header MUST NOT carry <tt>jwk</tt>, <tt>jku</tt>,
          <tt>x5c</tt>, <tt>x5u</tt>, <tt>x5t</tt>, <tt>x5t#S256</tt> or
          <tt>crit</tt>, and a signature entry MUST NOT carry an unprotected
          header; a verifier MUST reject an entry carrying any of them
          (<tt>signature-invalid</tt>). A key travels by reference and never
          inline, so that the <tt>kid</tt> rule cannot be bypassed.</li>
          <li>The resolved key MUST be of the type and curve <tt>alg</tt>
          requires: Ed25519 for <tt>Ed25519</tt>, P-256 for
          <tt>ES256</tt>, P-384 for <tt>ES384</tt>. A mismatch is
          <tt>signature-invalid</tt>.</li>
          <li><tt>typ</tt> MUST be the full media type of the object signed,
          including the <tt>application/</tt> prefix, so that a signature
          over one object type cannot be replayed as a signature over
          another. Section 4.1.9 of <xref target="RFC7515"/> recommends
          omitting the prefix; this document requires the full form so that
          <tt>typ</tt> equals the registered media type character for
          character. Explicit typing follows Section 3.11 of
          <xref target="RFC8725"/>.</li>
          <li>A <tt>signatures</tt> array MUST be sorted by the normalized
          <tt>kid</tt> of its entries (<xref target="independence"/>), ties
          broken by the unnormalized <tt>kid</tt>, both compared as
          sequences of Unicode code points; a verifier MUST reject an
          unsorted array (<tt>signatures-unordered</tt>). Two clients that
          each attach their own entry and exchange the object would
          otherwise produce two arrays, and since the digest covers the
          array, two digests for one agreement.</li>
          <li>An ECDSA signature MUST have its <tt>s</tt> value in the low
          half of the curve order, that is <tt>s</tt> at most n/2 for the
          order n of the curve <xref target="SP800-186"/>, and a verifier
          MUST reject one that does not. <xref target="RFC7518"/> fixes the
          encoding and not which of the two valid <tt>s</tt> values is
          accepted; accepting both lets anyone holding a valid signature
          produce a second one over the same bytes without the key, and a
          second signature is a second digest. Ed25519 verification per
          <xref target="RFC8032"/> already rejects a non-canonical
          <tt>S</tt>, so the rule is stated for ECDSA only.</li>
        </ul>

        <section anchor="keyres"><name>Key Resolution</name>
          <t>A <tt>kid</tt> is a URI naming a public key. A verifier MUST
          resolve it as follows, and MUST reject a signature whose
          <tt>kid</tt> it cannot resolve.</t>
          <ul>
            <li>A <tt>did:</tt> identifier is a DID URL
            <xref target="DID-CORE"/>. The verifier resolves the DID document
            by the method the identifier names and selects the verification
            method its fragment identifies. Examples in this document use
            <tt>did:web</tt> <xref target="DID-WEB"/>; no method is
            required or excluded.</li>
            <li>An <tt>https:</tt> identifier dereferences, over TLS, to a
            JWK Set <xref target="RFC7517"/>; the verifier selects the key
            whose <tt>kid</tt> member equals the fragment.</li>
          </ul>
          <t>The part of a <tt>kid</tt> before its fragment MUST equal, after
          the normalization in <xref target="independence"/>, the party
          identifier the signature is attributed to. Verifying a signature
          establishes that the holder of that key signed; that the key
          belongs to the party is a property of the identity method, and this
          document does not add to it. An identity system for agents defined
          elsewhere, such as <xref target="I-D.ietf-wimse-aims"/>, is used by naming its identifiers here in one of these two forms; a further form needs a resolution rule added to this list, which is the one change it would take.</t>
        </section>
      </section>

      <section anchor="conf-rules"><name>Rules Not Expressible in a Schema</name>
        <ul>
          <li><tt>parties.buyer</tt> and <tt>parties.seller</tt> MUST be
          distinct after the normalization in
          <xref target="independence"/> (<tt>parties-not-distinct</tt>).</li>
          <li>A contract MUST carry exactly one verifying signature whose
          <tt>kid</tt> covers <tt>parties.buyer</tt>, exactly one whose
          <tt>kid</tt> covers <tt>parties.seller</tt>, and no other
          (<tt>signature-missing</tt>, <tt>unexpected-signer</tt>). A count
          of signatures is not sufficient: two signatures covering one
          identifier MUST be rejected.</li>
          <li><tt>challenge.window_seconds</tt>, <tt>challenge.max_dispute_seconds</tt> and <tt>verification.max_verdict_seconds</tt> MUST be greater than zero, and <tt>task.deadline</tt> MUST be later than the instant of
          acceptance (<tt>deadline-invalid</tt>).</li>
          <li>Every URI member inside hash-committed content MUST have a
          sibling hash member, and a validator MUST reject content carrying
          <tt>harness_uri</tt>, <tt>rubric_uri</tt>, <tt>schema_uri</tt> or
          <tt>sample_uri</tt> without its hash.</li>
          <li>An <tt>acceptance</tt> object MUST carry the members required
          for the contract's tier. An empty <tt>acceptance</tt> object MUST be
          rejected.</li>
          <li><tt>terms.profile</tt> and <tt>terms.profile_hash</tt> MUST
          match an entry the Facilitator advertises, and
          <tt>terms.parameters</tt> MUST validate against that profile's
          schema (<tt>terms-unsupported</tt>,
          <tt>terms-parameters-invalid</tt>).</li>
          <li>Every object MUST validate against the schema published for its
          media type (<tt>schema-invalid</tt>), which includes the form of
          every amount (<xref target="conventions"/>); an amount carrying more
          decimal places than the settlement binding named in
          <tt>price.settlement</tt> supports is refused
          (<tt>amount-invalid</tt>).</li>
        </ul>
      </section>

      <section anchor="conf-vectors"><name>Test Vectors</name>
        <t>Most rules above have an accepting and a rejecting form; the table
        carries the ones a suite most often gets wrong. A
        conformance suite built from this section alone, with no reference to
        any implementation, should reach the same verdicts. Rejecting vectors
        name the rule they violate.</t>

        <table anchor="tab-vectors">
          <name>Conformance vectors</name>
          <thead>
            <tr><th>ID</th><th>Mutation from a valid object</th>
                <th>Expect</th></tr>
          </thead>
          <tbody>
            <tr><td>V-01</td><td>unmodified valid VTC</td><td>accept</td></tr>
            <tr><td>V-02</td><td><tt>alg</tt> set to <tt>none</tt></td>
                <td>reject</td></tr>
            <tr><td>V-03</td><td><tt>alg</tt> set to <tt>HS256</tt></td>
                <td>reject</td></tr>
            <tr><td>V-04</td><td><tt>kid</tt> moved outside the protected
                header</td><td>reject</td></tr>
            <tr><td>V-05</td><td><tt>typ</tt> of a Delivery on a VTC
                signature</td><td>reject</td></tr>
            <tr><td>V-06</td><td>buyer and seller set to the same
                identifier</td><td>reject</td></tr>
            <tr><td>V-07</td><td>buyer and seller differing only by trailing
                "/"</td><td>reject</td></tr>
            <tr><td>V-08</td><td>two signatures, both from the buyer</td>
                <td>reject</td></tr>
            <tr><td>V-09</td><td><tt>window_seconds</tt> of 0</td>
                <td>reject</td></tr>
            <tr><td>V-10</td><td><tt>acceptance</tt> as an empty object</td>
                <td>reject</td></tr>
            <tr><td>V-11</td><td><tt>harness_uri</tt> with
                <tt>harness_hash</tt> removed</td><td>reject</td></tr>
            <tr><td>V-12</td><td><tt>terms.profile_hash</tt> not advertised
                by the Facilitator</td><td>reject</td></tr>
            <tr><td>V-13</td><td><tt>terms.parameters</tt> failing the
                profile's schema</td><td>reject</td></tr>
            <tr><td>V-14</td><td>Delivery with <tt>evidence</tt> absent</td>
                <td>reject, no entry</td></tr>
            <tr><td>V-15</td><td>child whose buyer is not the parent's
                seller</td><td>reject</td></tr>
            <tr><td>V-16</td><td>child with L(child) not earlier than
                L(parent)</td><td>reject</td></tr>
            <tr><td>V-17</td><td>Verdict signed by the seller</td>
                <td>reject</td></tr>
            <tr><td>V-18</td><td>object keys ordered by code point rather than UTF-16 unit, a supplementary-plane key beside one in U+E000 to U+FFFF</td><td>digest mismatch</td></tr>
            <tr><td>V-19</td><td>buyer and seller differing only in the
                case of a <tt>did:web</tt> path</td><td>accept</td></tr>
            <tr><td>V-20</td><td>object carrying a member this document
                does not define for it</td><td>reject</td></tr>
            <tr><td>V-21</td><td><tt>signatures</tt> not sorted by
                normalized <tt>kid</tt></td><td>reject</td></tr>
            <tr><td>V-22</td><td>ECDSA signature with <tt>s</tt> above
                n/2</td><td>reject</td></tr>
            <tr><td>V-23</td><td>Verdict with <tt>delivery_hash</tt> computed
                over the Delivery without its signature</td>
                <td>reject</td></tr>
            <tr><td>V-24</td><td>Outcome Record whose <tt>transfers</tt>
                overdraw an account of the profile</td><td>reject</td></tr>
            <tr><td>V-25</td><td>a number serialized by the host language's
                default formatter, such as <tt>1.0</tt> for the float
                one</td><td>digest mismatch</td></tr>
            <tr><td>V-26</td><td>a protected header carrying a member <xref target="conf-sig"/> forbids: <tt>jwk</tt>, <tt>jku</tt>, <tt>x5c</tt>, <tt>x5u</tt>, <tt>x5t</tt>, <tt>x5t#S256</tt> or <tt>crit</tt></td>
                <td>reject</td></tr>
          </tbody>
        </table>

        <t>V-07 and V-18 are the two most often got wrong. V-07 fails wherever
        party comparison is a string equality on unnormalized identifiers.
        V-18 fails wherever canonicalization sorts keys by Unicode code point,
        which agrees with the required UTF-16 order for every ASCII key and so
        passes every vector an implementer would think to write. V-19 is the
        opposite mistake, folding more than <xref target="independence"/>
        allows, and the -01 reference validator made it. V-25 is the number
        half of the V-18 mistake: <xref target="RFC8785"/> prints numbers as
        ECMAScript does, so the float one is <tt>1</tt> and never
        <tt>1.0</tt>. The -02 reference canonicalizer printed <tt>1.0</tt>
        until this vector caught it, and the <tt>spec_hash</tt>, <tt>vtc_hash</tt> and <tt>delivery_hash</tt> of <xref target="example"/> changed when it was fixed.</t>
      </section>
    </section>

    <section anchor="example"><name>Worked Example</name>
      <t>The digests below are the reference repository's, at the
      tag named in <xref target="implstatus"/>. The object figures in earlier
      sections are the repository's objects with their signatures
      abbreviated and the contract's <tt>parameters</tt> elided; the digests
      here are computed over the full objects. The figures that the -01 revision printed here
      about a bond and a required detection rate are now the profile's; <xref target="appendix-profile"/> carries the rule and the parameters.</t>

      <t>A buyer commissions a data transformation at a price of 180.00 USDC
      under the <tt>verdict-first</tt> flow, the <tt>acceptance</tt>
      verification profile, and the terms profile of
      <xref target="appendix-profile"/> with the parameters shown there. The
      digests carried by the reference TaskSpec, contract and profile
      are:</t>

      <artwork type="ascii-art"><![CDATA[
========== NOTE: '\' line wrapping per RFC 8792 ===========

 spec_hash       sha256:9491d28ac7a3fcd3f0bf279f78e793547cd4ef111\
   d27ff6bee37f05531823b72
 criteria_hash   sha256:0bdde1ab6b081d2b4bda580c5393756ae95c10b83\
   51c9c55eb9316416265fc1b
 profile_hash    sha256:9fff6e3f3d99b26eb437a84b9de5b35124ccf6956\
   e835df2653b99d71d363a68
 vtc_hash        sha256:7af52ecee9592740ca9a8b3e0bbd097cf765ff494\
   9304c2c855ca1d746ba6459
 delivery_hash   sha256:6bcbb831ea27a8754a0df9b44361be12411e45370\
   cb3023331bc8bfbd924fcbe
      ]]></artwork>

      <t><tt>criteria_hash</tt> is the manifest digest of
      <xref target="hashes"/> over the acceptance instrument bundle, and the
      same value appears as <tt>acceptance.harness_hash</tt> inside the
      TaskSpec, so the instrument is committed both by the contract and from
      within the specification it belongs to. <tt>profile_hash</tt> is the
      same construction over the profile bundle. <tt>vtc_hash</tt> is the
      digest of the signed contract, and <tt>delivery_hash</tt> of the signed
      Delivery, both per <xref target="conventions"/>.</t>

      <t>The -01 revision printed three of the values above, <tt>spec_hash</tt>, <tt>criteria_hash</tt> and <tt>vtc_hash</tt>, and each differs from what it printed, for reasons recorded so that a reader comparing the two documents can account for the difference. <tt>spec_hash</tt> and <tt>vtc_hash</tt> differ because the -01 canonicalizer serialized numbers as the host language printed them (<xref target="conf-vectors"/>, V-25); <tt>spec_hash</tt> also because the TaskSpec now carries the sibling hashes <xref target="hashes"/> always required, and <tt>vtc_hash</tt> also because the contract's members changed (<xref target="changes"/>). <tt>criteria_hash</tt> carries no number; it differs because the two files of the instrument bundle were edited to drop their mention of the withdrawn call-for-bids example. <tt>profile_hash</tt> is new, and <tt>delivery_hash</tt>, which the -01 figures showed only as a placeholder, now covers the Delivery's signature.</t>

      <t>The traces the reference implementation records for this contract on the path of <xref target="fig-flow"/> and on the dispute path of <xref target="fig-dispute"/> carry the event sequences of the first two vectors in the profile's bundle, and the transfer lists the profile produces for them are those vectors' lists; the vectors name their objects by placeholder digests, so the match is of sequence and lists, not of bytes. <xref target="appendix-profile"/> prints both lists.</t>
    </section>

    <section anchor="implstatus"><name>Implementation Status</name>
      <t>This section records the status of known implementations of this
      document per <xref target="RFC7942"/>. The section and the reference to <xref target="RFC7942"/> are to be removed before publication as an RFC, and the listing of an implementation here implies no endorsement by the IETF.</t>
      <t>One implementation is known to the author, and the author wrote it:
      https://github.com/pact-spec/spec, under the Apache License 2.0. At
      tag v0.2.0 it comprises the object schemas, the examples whose digests
      <xref target="example"/> prints, a conformance validator that runs 107 checks including every vector of
      <xref target="conf-vectors"/>, a Facilitator serving the endpoints of
      <xref target="endpoints"/> with the profile of
      <xref target="appendix-profile"/>, and clients for the other roles. Its
      previous tag, v0.1.0, implemented the -01 revision and is the source
      of the measurements the author has published about it. No second
      implementation exists, so nothing in <xref target="experiment"/> has
      been tested, and this document claims no interoperability. It is an individual submission and the product of no working group; the implementation is a prototype, the information is current as of the tag named above, and the contact is the author.</t>
    </section>

    <section anchor="security"><name>Security Considerations</name>
      <t>Most of what follows was found by adversarial review of earlier
      revisions rather than anticipated when they were written. Each
      subsection states the attack, why it worked, and the requirement in
      this document that closes it. Where a threat is only mitigated rather
      than closed, that is said. The table first: for each party, what the
      protocol enforces against it, what it records about it, and who can
      check the record without trusting the Facilitator.</t>

      <table anchor="tab-threats">
        <name>What the protocol enforces, records and lets others check, by party</name>
        <thead>
          <tr><th>Party</th><th>Enforced against it</th>
              <th>Recorded about it</th><th>Checkable by</th></tr>
        </thead>
        <tbody>
          <tr><td>Buyer</td>
              <td>cannot alter the task, instrument or terms after signing;
              cannot attach a child to a contract it is not party to</td>
              <td>its signature on the contract; any Challenge it
              signs</td>
              <td>anyone holding the contract</td></tr>
          <tr><td>Seller</td>
              <td>cannot deliver against a substituted instrument or input;
              is refused as Verifier when it signs under a party identifier; cannot re-sign a record without
              changing every digest over it</td>
              <td>its signature on the contract and the Delivery; the
              Verdicts and Challenges on its Delivery</td>
              <td>anyone holding the contract and the Delivery</td></tr>
          <tr><td>Verifier</td>
              <td>cannot be a party to the contract; must commit to the
              instrument it ran and its results</td>
              <td>its Verdicts, superseded ones included</td>
              <td>anyone holding the Delivery and the instrument</td></tr>
          <tr><td>Facilitator</td>
              <td>nothing</td>
              <td>what it chose to sign, in the order it chose, on a clock
              that is its own</td>
              <td>any holder of two of its Statuses, for equivocation;
              nobody, for omission or for time, without a witness outside
              this document</td></tr>
        </tbody>
      </table>

      <section anchor="sec-facilitator"><name>Trust in the Facilitator</name>
        <t>The Facilitator row is the honest one. This protocol enforces
        nothing against a Facilitator; it makes some kinds of misbehaviour
        attributable and says plainly which ones it does not.</t>
        <t>Equivocation, issuing two inconsistent histories for one contract,
        is attributable: every Status is signed, every Status's trace is a
        prefix of every later one, and two Statuses that break that rule are
        proof, checkable by anyone holding both, that the Facilitator signed
        contradictory records. A Facilitator that wants to make its records
        publicly append-only can register its Outcome Records with a SCITT
        transparency service <xref target="RFC9943"/> and hand the receipt
        <xref target="RFC9942"/> to the parties; this document does not
        require it and defines no log of its own.</t>
        <t>Omission is not attributable. A Facilitator that declines to
        record a Delivery, or records it late, produces no signed evidence of
        having declined, and a Status it does not issue proves nothing. A
        client SHOULD retain every Status it receives, and a party that
        submitted a record and holds no Status for it has a claim it can
        make only outside this protocol. Making omission attributable needs
        a witness the Facilitator does not control, such as the client gossip that <xref target="RFC9162"/> Section 11.3 mentions and leaves undefined, and this document specifies none.</t>
        <t>Time is the Facilitator's. Every instant in a trace is read from
        its clock, and nothing in this document lets a party prove that a
        recorded instant is wrong. This document therefore states the
        assumption rather than hiding it: the Facilitator is a trusted
        timekeeper, and a deployment that cannot accept that should look to
        an external timestamping service, which this document does not
        specify and does not preclude.</t>
        <t>Whatever a Facilitator does with anything of value under a terms
        profile is the profile's subject and is not addressed here.</t>
      </section>

      <section anchor="sec-verifier"><name>Verifier Capture</name>
        <t>A verification tier states how strongly work is checked. It does
        not state who checked it, and those fail separately. A re-execution
        transcript produced by the Seller and the same transcript produced by
        an independent Challenger are the same method and different evidence.
        Where a proof is generated and verified entirely inside one party,
        the tier is satisfied and the contract is unprotected.
        <xref target="independence"/> requires that independence be derived
        by the evaluator from the parties named in the contract, and forbids
        satisfying it with a self-asserted field.</t>
      </section>

      <section anchor="sec-alg"><name>Algorithm, Key and Encoding Confusion</name>
        <t>Absent an algorithm allowlist an attacker chooses the algorithm.
        The two consequences are <tt>alg</tt> of <tt>none</tt>, which makes
        every signature check vacuous, and presenting an ECDSA public key as
        an HMAC secret, which lets anyone holding the public key forge.
        <xref target="conf-sig"/> fixes the permitted set.</t>
        <t>A <tt>kid</tt> carried as a sibling of the protected header rather
        than inside it is outside the signed bytes and is rewritable in
        transit. An attacker who can publish a key document can then
        re-attribute a victim's genuine signature to an identifier it
        controls, without breaking any cryptography.
        <xref target="conf-sig"/> requires <tt>kid</tt> inside the protected
        header.</t>
        <t>Because every digest in this document covers a signature set, a
        second valid encoding of one signature is a second digest for one
        record. ECDSA has two valid <tt>s</tt> values per signature and JWS
        does not choose between them; the low-S rule in
        <xref target="conf-sig"/> does. The order of a signature set is a
        second source of the same problem, and the sorting rule closes
        it.</t>
      </section>

      <section anchor="sec-substitution"><name>Substitution of Committed Content</name>
        <t>The -00 revision committed <tt>harness_uri</tt> as a string. The
        bytes at that URI were covered by nothing. A Buyer could therefore
        sign a contract, replace the acceptance instrument afterwards, run the
        replacement, and submit its failure as a textbook-valid proof of nonconformance.
        Cost of the attack: one file overwrite. The mirror attack works
        against a Seller that hosts the input sample.
        <xref target="hashes"/> requires a sibling hash over the dereferenced
        bytes for every URI inside committed content, and
        <xref target="verdicts"/> requires a Verdict to commit to the
        instrument it actually ran, which closes the same attack from the
        verification side.</t>
      </section>

      <section anchor="sec-fetch"><name>Fetching Committed Content</name>
        <t>A <tt>work_uri</tt>, <tt>results_uri</tt> or any other URI in a
        record is supplied by a counterparty and points wherever that
        counterparty chose. An implementation that fetches it MUST fetch over
        HTTPS only, MUST NOT follow a redirect to a scheme other than HTTPS,
        MUST refuse to connect to a private, loopback or link-local address
        (the ranges of <xref target="RFC1918"/>, <xref target="RFC4193"/> and
        their loopback and link-local counterparts), and MUST verify the
        sibling hash over the full received bytes before any byte is used
        for anything. A fetcher that acts on partial or unverified content
        has handed its counterparty a way to make it execute, store or judge
        something that was never committed to.</t>
      </section>

      <section anchor="sec-parent"><name>Children: Attachment and Omission</name>
        <t>Naming a parent contract cost one signature in the -00 revision
        and was checked against nothing. <xref target="tree-registration"/>
        requires the child's Buyer to be the parent's Seller, checked by the
        Facilitator that holds the parent against the parent's own bytes.</t>
        <t>The converse gap is stated rather than closed: a parent's Seller
        that never registers a failing child keeps it out of the parent's
        record, since this document compels no registration. A profile that
        wants children visible must make registration worth the Seller's
        while, or a Buyer that wants them visible must ask for the child's
        Status directly, which this document does not require the child's
        Facilitator to give it.</t>
      </section>

      <section anchor="sec-silence"><name>Buying Silence from a Challenger</name>
        <t>Wherever what a discoverer gains by reporting is less than what a
        performer loses by being reported, there is a private payment that
        leaves both better off than reporting, and silence dominates whatever
        reward a profile designed. This document cannot close that, because
        every figure involved is the profile's. What it does is record every
        Challenge, in order, whoever signed it, so that a profile can act on
        each independently, and it forbids a Facilitator from refusing a
        Challenge because the Buyer signed it
        (<xref target="challenges"/>), so that the party with the most to
        recover is always admissible.</t>
      </section>

      <section anchor="sec-nondelivery"><name>Non-Delivery</name>
        <t>Under the -00 revision a contract in which nothing was ever
        delivered had no path to an end: the deadline carried no stated
        consequence and no window opened because there was nothing to
        challenge. <xref target="events"/> makes the deadline an event and
        ABANDONED a terminal state that every contract can reach. What
        reaching it costs anyone is the profile's, and a profile that makes
        delivering nothing cheaper than delivering something wrong has
        recreated the -00 incentive.</t>
      </section>

      <section anchor="sec-replay"><name>Cross-Venue Replay</name>
        <t>A VTC that does not name its Facilitator, network and asset is a
        signed instrument replayable against any of them; <xref target="vtc"/>
        requires all three inside the signed content. A digest computed over
        a contract excluding its signatures proves what was written and not
        who agreed to it, so entries can be appended or stripped without
        invalidating the commitment; <xref target="conventions"/> defines
        every digest over the signature set. A Delivery, Verdict or Challenge
        replayed against a different contract fails because each carries
        <tt>vtc_id</tt> and a hash that binds it to one contract and one
        Delivery, and the <tt>typ</tt> rule of <xref target="conf-sig"/>
        stops a signature over one object type standing for another.</t>
      </section>

      <section anchor="sec-determinism"><name>Nondeterminism as Shield and as Weapon</name>
        <t>A re-execution profile that does not state what determinism it
        assumes cuts both ways. An honest Seller doing model-assisted work is found wrong by a re-execution that differs for ordinary reasons. A
        cheating Seller escapes any proof of nonconformance by asserting nondeterminism,
        unfalsifiably. A verification profile MUST state whether it is
        deterministic and what tolerance applies, and a contract naming one
        that does not cannot be judged safely by anyone.</t>
      </section>

      <section anchor="sec-history"><name>Fabricated History</name>
        <t>The argument for reputation derived from Outcome Records is that
        faking a history requires running real contracts. That argument fails
        if records do not name the parties or carry no Facilitator signature,
        since two cooperating identities can then manufacture history at the
        cost of two signatures. <xref target="outcomes"/> requires both. It
        fails in the other direction if a negative outcome requires the
        signature of the party it records against; reputation that is
        structurally incapable of recording a loss is not evidence of
        anything.</t>
      </section>

      <section anchor="sec-retrieval"><name>Retrieval</name>
        <t>A GET on a contract's Status or Outcome Record MUST be refused (<tt>retrieval-restricted</tt>) unless the requester is a party named in the contract's
        <tt>parties</tt>, the identifier in the contract's
        <tt>parent.facilitator</tt>, or a party the Facilitator has chosen to
        admit; a Facilitator MAY open retrieval more widely and SHOULD say so in its capability document (<tt>retrieval</tt>, <xref target="dict-capabilities"/>). How a requester proves which identifier
        it is, on a GET with no body to sign, is an HTTP-layer matter this
        document leaves to the deployment. The -01 revision left retrieval
        unauthenticated by default, which published every contract graph a
        Facilitator held to anyone who could guess an identifier.</t>
      </section>

      <section anchor="sec-keys"><name>Key Compromise and Rotation</name>
        <t>A signature here is a long-lived commitment, and a compromised key
        signs contracts the party never agreed to. Rotation and revocation
        belong to the identity method behind the <tt>kid</tt>
        (<xref target="keyres"/>), and this document does not restate them.
        Two things it does require: a Facilitator MUST retain, for as long as it retains a record it accepted, the key material or its digest as resolved at the time of acceptance, and SHOULD make it available to a party retrieving the record, so that a later rotation does not make an earlier signature unverifiable; and a Facilitator MUST NOT accept a record
        whose <tt>kid</tt> resolves to a key the identity method marks as
        revoked at the time of acceptance.</t>
      </section>

      <section anchor="sec-dos"><name>Denial of Service by Challenge</name>
        <t>Every accepted Challenge costs an independent evaluation. Without a
        cost to the Challenger, a party can exhaust a Verifier's or a
        Facilitator's capacity by challenging every Delivery. A deposit required by a terms profile, advertised as <tt>challenge_deposit</tt> (<xref target="challenges"/>), is one defence, and this document requires none, since a deposit also deters the honest Challenger an open model relies on. A Facilitator whose profiles require no deposit SHOULD rate-limit Challenges per
        Challenger and per contract, and SHOULD publish that it does so.</t>
      </section>
    </section>

    <section anchor="privacy"><name>Privacy Considerations</name>
      <t>PACT moves contracts and evidence about work, and both leak.</t>

      <section anchor="priv-sample"><name>Input Disclosure Before Contract Formation</name>
        <t>Publishing a representative input sample so that a counterparty can
        price the work discloses production data to parties with whom no
        contract exists and who may be in unknown jurisdictions. Samples
        SHOULD be synthetic or de-identified. Where a real sample is
        necessary, it SHOULD be disclosed only after a confidentiality
        undertaking, and the <tt>constraints</tt> member SHOULD carry the
        retention and deletion terms. This document cannot enforce any of
        that and does not pretend to.</t>
      </section>

      <section anchor="priv-graph"><name>The Contract Graph</name>
        <t>A Facilitator that publishes its Outcome Records makes the
        contract graph public. From it a reader can reconstruct an
        organisation's suppliers, spend and cadence, which is commercially
        sensitive even when no individual is identifiable. Transparency and
        counterparty privacy are in genuine tension here, and this document
        resolves it in favour of neither: retrieval is restricted by default
        (<xref target="sec-retrieval"/>), a Facilitator MAY publish
        aggregates, and SHOULD NOT publish per-contract records identifying
        both parties without their agreement. Outcome Records leak the same
        graph by construction, since each names both parties and the
        counterparty retains a signed copy indefinitely. Selective
        disclosure over Outcome Records, so that a holder can prove a
        completed contract without revealing the counterparty, is possible
        with mechanisms specified elsewhere and is not specified here.</t>
      </section>

      <section anchor="priv-Challenger"><name>Challenger Access</name>
        <t>An open challenge model requires that some party outside the
        contract can obtain the deliverable and the input in order to build a
        proof of nonconformance. That is in direct conflict with confidentiality of both.
        The conflict is real and this document does not dissolve it. What it
        does is make the choice visible: a contract whose content cannot be
        disclosed to a Challenger will receive no Challenge from outside its
        parties, and a terms profile that counts on one has counted on
        nothing.</t>
      </section>

      <section anchor="priv-retention"><name>Retention</name>
        <t>Retention periods stated for dispute purposes can conflict with erasure requests from a data subject. Contracts SHOULD state a
        retention period, and implementers should be aware that a hash
        commitment survives deletion of the content it commits to, which is
        usually the property they want and occasionally the one they must
        explain.</t>
      </section>
    </section>

    <section anchor="iana"><name>IANA Considerations</name>
      <t>This document asks IANA to register seven media types in the vendor
      tree and one well-known URI. It creates no registry. It defines
      problem types but does not ask for a registry of them
      (<xref target="iana-problems"/>). The -01 revision asked for two
      registries, one of verification profiles and one of settlement
      bindings, and listed under the second an identifier in another
      project's namespace that nobody had defined; both requests are
      withdrawn. A profile of either kind is identified by a URI under its
      definer's control and needs no registration.</t>

      <section anchor="iana-media"><name>Media Types</name>
        <t>IANA is requested to register the following in the "Media Types"
        registry, per <xref target="RFC6838"/>, in the vendor tree. The
        template below is given once in full; the seven registrations differ
        only in the subtype name and the object they carry.</t>

        <dl>
          <dt>Type name:</dt><dd>application</dd>
          <dt>Subtype name:</dt><dd>see <xref target="tab-media"/></dd>
          <dt>Required parameters:</dt><dd>N/A</dd>
          <dt>Optional parameters:</dt><dd>N/A</dd>
          <dt>Encoding considerations:</dt><dd>binary; the content is JSON
          text as defined in <xref target="RFC8259"/>, encoded in UTF-8</dd>
          <dt>Security considerations:</dt><dd>See
          <xref target="security"/> of this document. In particular these
          media types carry signed objects whose signatures MUST be verified
          under the constraints in <xref target="conf-sig"/>; accepting one
          without algorithm restriction permits signature forgery.</dd>
          <dt>Interoperability considerations:</dt><dd>Objects MUST be
          canonicalized per <xref target="RFC8785"/> before hashing or
          signing. Implementations that canonicalize by sorting object keys
          on Unicode code point rather than UTF-16 code unit can produce a divergent digest when a key outside the Basic Multilingual Plane is compared with one whose first differing unit lies in U+E000 to U+FFFF.</dd>
          <dt>Published specification:</dt><dd>This document</dd>
          <dt>Applications that use this media type:</dt><dd>Services and
          autonomous agents forming and recording task contracts under this
          specification</dd>
          <dt>Fragment identifier considerations:</dt><dd>As specified for
          <tt>application/json</tt></dd>
          <dt>Additional information:</dt><dd>Deprecated alias names: none.
          Magic numbers: none. File extensions: .json. Macintosh file type
          code: TEXT</dd>
          <dt>Person &amp; email address to contact:</dt><dd>Laxmikant Sharma
          &lt;laxsharma79@gmail.com&gt;</dd>
          <dt>Intended usage:</dt><dd>COMMON</dd>
          <dt>Restrictions on usage:</dt><dd>None</dd>
          <dt>Author:</dt><dd>Laxmikant Sharma</dd>
          <dt>Change controller:</dt><dd>Laxmikant Sharma</dd>
        </dl>

        <table anchor="tab-media">
          <name>Media types registered by this document</name>
          <thead>
            <tr><th>Subtype name</th><th>Object</th><th>Defined in</th></tr>
          </thead>
          <tbody>
            <tr><td>vnd.pact.contract+json</td><td>Verifiable Task Contract</td>
                <td><xref target="vtc"/></td></tr>
            <tr><td>vnd.pact.delivery+json</td><td>Delivery</td>
                <td><xref target="delivery"/></td></tr>
            <tr><td>vnd.pact.verdict+json</td><td>Verdict</td>
                <td><xref target="verdicts"/></td></tr>
            <tr><td>vnd.pact.challenge+json</td><td>Challenge</td>
                <td><xref target="challenges"/></td></tr>
            <tr><td>vnd.pact.status+json</td><td>Contract Status</td>
                <td><xref target="status"/></td></tr>
            <tr><td>vnd.pact.outcome+json</td><td>Outcome Record</td>
                <td><xref target="outcomes"/></td></tr>
            <tr><td>vnd.pact.facilitator+json</td><td>Capability document</td>
                <td><xref target="wellknown"/></td></tr>
          </tbody>
        </table>

        <t>The -01 revision asked for these in the standards tree under the
        names <tt>pact-contract+json</tt> and so on. Registration in that
        tree from outside the IETF stream needs approval this document does
        not have (<xref target="RFC6838"/>, Section 3.1), and <xref target="RFC6838"/> Section 3.2 opens the vendor tree to anyone who interchanges files associated with a publicly available product.</t>
      </section>

      <section anchor="iana-wellknown"><name>Well-Known URI</name>
        <t>IANA is requested to register the following in the "Well-Known
        URIs" registry, per <xref target="RFC8615"/>.</t>
        <dl>
          <dt>URI suffix:</dt><dd>pact-facilitator</dd>
          <dt>Change controller:</dt><dd>Laxmikant Sharma</dd>
          <dt>Specification document(s):</dt><dd>This document,
          <xref target="wellknown"/></dd>
          <dt>Status:</dt><dd>provisional</dd>
          <dt>Related information:</dt><dd>The resource is served with media
          type <tt>application/vnd.pact.facilitator+json</tt> and MUST be
          signed.</dd>
        </dl>
      </section>

      <section anchor="iana-problems"><name>Problem Types</name>
        <t>This document creates no registry for its problem types.
        <xref target="RFC9457"/> Section 4.2 establishes the "HTTP Problem
        Types" registry for types intended for reuse across applications;
        the types below are specific to this protocol and are identified by
        URIs in a namespace this document defines, which that specification
        permits without registration. Each is the identifier in the table
        appended to the prefix
        <tt>tag:laxsharma79@gmail.com,2026:pact:problem:</tt>, a tag URI
        <xref target="RFC4151"/> under the author's control. A tag URI is an identifier and does not dereference. <xref target="RFC9457"/> Section 4 says a type URI SHOULD resolve to documentation; this document departs from that on purpose, so that an identifier does not change when hosting does, which the -01 revision's prefix on a code-hosting site could not promise, and the section named for each type is its documentation. The list of types, each with its status and the section that defines it, is printed by the reference implementation in the repository named in <xref target="implstatus"/>, and the section named for each type says what it means. Each entry carries the identifier, the
        HTTP status it accompanies, and the section stating the rule it
        reports. A terms profile that refuses a request defines its own
        types under its own prefix and reports them as
        <xref target="ep-errors"/> says.</t>

        <table anchor="tab-problems">
          <name>Problem types defined by this document</name>
          <thead>
            <tr><th>Identifier</th><th>Status</th><th>Defined in</th></tr>
          </thead>
          <tbody>
            <tr><td>algorithm-not-permitted</td><td>400</td>
                <td><xref target="conf-sig"/></td></tr>
            <tr><td>amount-invalid</td><td>422</td>
                <td><xref target="conf-rules"/></td></tr>
            <tr><td>challenge-window-closed</td><td>409</td>
                <td><xref target="challenges"/></td></tr>
            <tr><td>child-outcome-invalid</td><td>422</td>
                <td><xref target="tree-registration"/></td></tr>
            <tr><td>deadline-invalid</td><td>422</td>
                <td><xref target="conf-rules"/></td></tr>
            <tr><td>evidence-nonconformant</td><td>422</td>
                <td><xref target="delivery"/></td></tr>
            <tr><td>facilitator-mismatch</td><td>422</td>
                <td><xref target="ep-propose"/></td></tr>
            <tr><td>finality-ordering-violation</td><td>422</td>
                <td><xref target="tree-timing"/></td></tr>
            <tr><td>flow-unsupported</td><td>422</td>
                <td><xref target="flows"/></td></tr>
            <tr><td>internal-error</td><td>500</td>
                <td><xref target="endpoints"/></td></tr>
            <tr><td>no-recorded-delivery</td><td>409</td>
                <td><xref target="verdicts"/></td></tr>
            <tr><td>object-conflict</td><td>409</td>
                <td><xref target="ep-idempotency"/></td></tr>
            <tr><td>parent-unresolvable</td><td>422</td>
                <td><xref target="tree-registration"/></td></tr>
            <tr><td>parties-not-distinct</td><td>422</td>
                <td><xref target="conf-rules"/></td></tr>
            <tr><td>payload-too-large</td><td>413</td>
                <td><xref target="endpoints"/></td></tr>
            <tr><td>proof-nonconformant</td><td>422</td>
                <td><xref target="challenges"/></td></tr>
            <tr><td>retrieval-restricted</td><td>403</td>
                <td><xref target="sec-retrieval"/></td></tr>
            <tr><td>schema-invalid</td><td>422</td>
                <td><xref target="conf-rules"/></td></tr>
            <tr><td>settlement-unsupported</td><td>422</td>
                <td><xref target="ep-propose"/></td></tr>
            <tr><td>signature-invalid</td><td>400</td>
                <td><xref target="conf-sig"/></td></tr>
            <tr><td>signature-missing</td><td>400</td>
                <td><xref target="conf-rules"/></td></tr>
            <tr><td>signatures-unordered</td><td>422</td>
                <td><xref target="conf-sig"/></td></tr>
            <tr><td>terms-parameters-invalid</td><td>422</td>
                <td><xref target="terms"/></td></tr>
            <tr><td>terms-unsupported</td><td>422</td>
                <td><xref target="terms"/></td></tr>
            <tr><td>unexpected-signer</td><td>422</td>
                <td><xref target="conf-rules"/></td></tr>
            <tr><td>unknown-contract</td><td>404</td>
                <td><xref target="endpoints"/></td></tr>
            <tr><td>verdict-nonconformant</td><td>422</td>
                <td><xref target="verdicts"/></td></tr>
            <tr><td>verifier-not-independent</td><td>422</td>
                <td><xref target="independence"/></td></tr>
            <tr><td>wrong-state</td><td>409</td>
                <td><xref target="events"/></td></tr>
          </tbody>
        </table>

        <t>The table is generated from the reference implementation's own
        list, so that every type an implementation of this document emits
        has a line here. The -01 revision listed eight of the twenty-nine its
        implementation used.</t>
      </section>
    </section>

  </middle>

  <back>
    <references><name>Normative References</name>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.2119.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8174.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8785.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9457.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.7515.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.7518.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8037.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9864.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8032.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.7517.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8615.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.6838.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8259.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9162.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.3339.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9110.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9325.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.4151.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.1918.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.4193.xml"/>
      <reference anchor="DID-CORE" target="https://www.w3.org/TR/2022/REC-did-core-20220719/">
        <front><title>Decentralized Identifiers (DIDs) v1.0</title>
          <author><organization>W3C</organization></author>
          <date day="19" month="July" year="2022"/></front>
        <refcontent>W3C Recommendation</refcontent>
      </reference>
      <reference anchor="DID-WEB" target="https://w3c-ccg.github.io/did-method-web/">
        <front><title>did:web Method Specification</title>
          <author><organization>W3C Credentials Community Group</organization></author>
          <date/></front>
        <refcontent>Unofficial draft, undated; accessed 16 September 2026</refcontent>
      </reference>
          <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.bhutton-json-schema.xml"/>
    </references>

    <references><name>Informative References</name>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9334.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.6979.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9711.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9943.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.9942.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8725.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.7942.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8792.xml"/>
      <reference anchor="CAIP-2" target="https://github.com/ChainAgnostic/CAIPs/blob/main/CAIPs/caip-2.md">
        <front><title>CAIP-2: Blockchain ID Specification</title>
          <author><organization>Chain Agnostic Standards Alliance</organization></author>
          <date day="5" month="December" year="2019"/></front>
        <refcontent>Status: Final</refcontent>
      </reference>
      <reference anchor="X402COMPLIANCE" target="https://github.com/x402-foundation/x402/pull/2853">
        <front>
          <title>Extension: compliance-fields</title>
          <author><organization>wowlegend (Tersign), pull request author</organization></author>
          <date month="July" year="2026"/>
        </front>
        <refcontent>Open pull request 2853 to x402-foundation/x402, specs/extensions/compliance_fields.md, unmerged as of September 2026</refcontent>
      </reference>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.8555.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.5280.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.3647.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml/reference.RFC.2801.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.ietf-httpapi-idempotency-key-header.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.ietf-satp-core.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.hood-agtp-commerce.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.ietf-wimse-aims.xml"/>
      <reference anchor="I-D.stone-vcap-ap2-binding" target="https://datatracker.ietf.org/doc/html/draft-stone-vcap-ap2-binding-01">
        <front>
          <title>VCAP-AP2 Binding: Verified Delivery Settlement for the Agent Payments Protocol</title>
          <author fullname="Ben Stone" initials="B." surname="Stone">
            <organization>SwarmSync.AI</organization>
          </author>
          <date day="4" month="September" year="2026"/>
          <abstract>
            <t>This document defines a binding between Verified Commerce for Agent Protocols (VCAP) and the Agent Payments Protocol (AP2). AP2 supplies agent-commerce authorization evidence through IntentMandate, CartMandate, and PaymentMandate artifacts. VCAP supplies delivery verification, settlement evidence, escrow directives, timeout handling, and dispute handoff. This revision deliberately does not model AP2 as an escrow or settlement state machine. Current AP2 positions itself as an authorization and security layer used within a surrounding commerce protocol, including Universal Commerce Protocol (UCP). Accordingly, this binding references AP2 mandates by cryptographic digest or opaque identifier and leaves payment capture, refund, and settlement transitions to the commerce protocol and payment rail.</t>
          </abstract>
        </front>
        <seriesInfo name="Internet-Draft" value="draft-stone-vcap-ap2-binding-01"/>
      </reference>
      <reference anchor="I-D.sahu-agent-action-receipts" target="https://datatracker.ietf.org/doc/html/draft-sahu-agent-action-receipts-00">
        <front>
          <title>Signed, Hash-Chained Action Receipts for AI Agents</title>
          <author fullname="Nancy Sahu" initials="N." surname="Sahu">
            <organization>kriya native</organization>
          </author>
          <date day="16" month="August" year="2026"/>
          <abstract>
            <t>This document specifies a format for action receipts: compact, individually signed JSON records that state that a specific AI agent attempted a specific action at a specific time, under a specific policy decision, and what the outcome was. Receipts are linked into an append-only hash chain so that deletion, insertion, reordering, or modification of any previously recorded receipt is detectable by a verifier that holds only the records and the signer's public key. The format is deliberately small and self-contained. Verification requires no network access, no service operated by the producer of the receipts, and no state beyond the records themselves and a trust anchor obtained out of band. This document specifies the record fields, the canonical byte sequence that is signed, the chain linkage rule, the verification procedure, and test vectors.</t>
          </abstract>
        </front>
        <seriesInfo name="Internet-Draft" value="draft-sahu-agent-action-receipts-00"/>
      </reference>
      <reference anchor="I-D.mih-sato-agent-accountability-composition" target="https://datatracker.ietf.org/doc/html/draft-mih-sato-agent-accountability-composition-01">
        <front>
          <title>Agent Accountability: Composition and Conformance</title>
          <author fullname="Steven Mih" initials="S." surname="Mih">
            <organization>Action State Group, Inc.</organization>
          </author>
          <author fullname="Tom Sato" initials="T." surname="Sato">
            <organization>MyAuberge K.K.</organization>
          </author>
          <author fullname="Iman Schrock" initials="I." surname="Schrock">
            <organization>EMILIA Protocol, Inc.</organization>
          </author>
          <author fullname="Songbo Bu" initials="S." surname="Bu">
            <organization>Independent</organization>
          </author>
          <author fullname="Anton Sokolov" initials="A." surname="Sokolov">
            <organization>Tyche Institute</organization>
          </author>
          <date day="16" month="August" year="2026"/>
        </front>
        <seriesInfo name="Internet-Draft" value="draft-mih-sato-agent-accountability-composition-01"/>
      </reference>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.asor-wimse-agent-delegation-chain.xml"/>
      <xi:include href="https://bib.ietf.org/public/rfc/bibxml3/reference.I-D.pinto-agent-authz-contestability.xml"/>
      <reference anchor="I-D.laxsharma-pact-01" target="https://www.ietf.org/archive/id/draft-laxsharma-pact-01.html">
        <front>
          <title>PACT: Liability and Settlement for Autonomous Agent Contracts</title>
          <author initials="L." surname="Sharma"/>
          <date day="4" month="September" year="2026"/>
        </front>
        <refcontent>Internet-Draft, draft-laxsharma-pact-01, superseded by this document</refcontent>
      </reference>
      <reference anchor="I-D.laxsharma-pact-00" target="https://www.ietf.org/archive/id/draft-laxsharma-pact-00.html">
        <front>
          <title>PACT: A Contract Layer for Autonomous Agent Commerce</title>
          <author initials="L." surname="Sharma"/>
          <date day="27" month="July" year="2026"/>
        </front>
        <refcontent>Internet-Draft, draft-laxsharma-pact-00, superseded</refcontent>
      </reference>
      <reference anchor="ASOKAN98" target="https://doi.org/10.1109/secpri.1998.674826">
        <front>
          <title>Asynchronous Protocols for Optimistic Fair Exchange</title>
          <author initials="N." surname="Asokan"/>
          <author initials="V." surname="Shoup"/>
          <author initials="M." surname="Waidner"/>
          <date year="1998"/>
        </front>
        <refcontent>Proceedings of the IEEE Symposium on Security and Privacy</refcontent>
      </reference>
      <reference anchor="BELENKIY08" target="https://doi.org/10.1145/1403027.1403046">
        <front>
          <title>Incentivizing Outsourced Computation</title>
          <author initials="M." surname="Belenkiy"/>
          <author initials="M." surname="Chase"/>
          <author initials="C.C." surname="Erway"/>
          <author initials="J." surname="Jannotti"/>
          <author initials="A." surname="Kupcu"/>
          <author initials="A." surname="Lysyanskaya"/>
          <date year="2008"/>
        </front>
        <refcontent>Proceedings of the 3rd International Workshop on Economics
        of Networked Systems (NetEcon '08), pp. 85-90</refcontent>
      </reference>
      <reference anchor="POLINSKY99">
        <front>
          <title>Public Enforcement of Law</title>
          <author initials="A.M." surname="Polinsky"/>
          <author initials="S." surname="Shavell"/>
          <date year="1999"/>
        </front>
        <refcontent>Encyclopedia of Law and Economics, entry 8000,
        Edward Elgar. The result is attributed therein to Bentham (1789)</refcontent>
      </reference>
      <reference anchor="SP800-186" target="https://doi.org/10.6028/NIST.SP.800-186">
        <front>
          <title>Recommendations for Discrete Logarithm-based Cryptography: Elliptic Curve Domain Parameters</title>
          <author><organization>National Institute of Standards and Technology</organization></author>
          <date month="February" year="2023"/>
        </front>
        <refcontent>NIST Special Publication 800-186</refcontent>
      </reference>
    </references>

    <section anchor="appendix-profile"><name>An Example Terms Profile: bonded-restitution</name>
      <t>This appendix is not normative. It carries one terms profile,
      under an example identifier and unregistered, so that the experiment
      in <xref target="experiment"/> has something to run against and the
      vectors in the reference repository have something to reproduce. It
      is the -01 revision's settlement content written as a schedule over
      the events of <xref target="events"/>, with the choices the -01 revision left open now made and two of its own choices changed where the arithmetic or its text required (<xref target="profile-schedule"/>), and it is offered as an example of the
      form a profile takes, not as a recommendation of these terms. What the
      figures below mean between the parties to a contract that names this
      profile is a question this document does not answer and its author is
      not qualified to answer; a profile meant for use needs an owner who is. Until such a profile exists, this one is also the only profile a Facilitator can list, since <tt>terms_profiles</tt> must have an entry; that is a fact about the present and not a rule of this document.</t>

      <section anchor="profile-identity"><name>Identity and Bundle</name>
        <t>Identifier:
        <tt>tag:laxsharma79@gmail.com,2026:pact:bonded-restitution</tt>.
        The bundle in the reference repository, under
        <tt>profiles/bonded-restitution/</tt>, contains
        <tt>README.md</tt> (the prose of this appendix, in Markdown), <tt>parameters.schema.json</tt> and
        <tt>vectors.json</tt>; <tt>profile_hash</tt> is the manifest digest
        over those three files and <xref target="example"/> prints it.
        Problem types this profile reports are under the prefix
        <tt>tag:laxsharma79@gmail.com,2026:pact:bonded-restitution:problem:</tt>.</t>
      </section>

      <section anchor="profile-parameters"><name>Parameters</name>
        <dl>
          <dt><tt>seller_bond</tt>:</dt><dd>amount, required. What the
          Seller posts before performance.</dd>
          <dt><tt>verification_fund</tt>:</dt><dd>amount, required. What the Seller posts to pay for checking; the -01 prose never said who posts it and its figure drew it from the Seller, which this profile follows.</dd>
          <dt><tt>cap</tt>:</dt><dd>amount, required. The most that leaves the bond under this contract; it bounds ranks 3 to 5 together, and what the bond holds beyond it returns to the Seller.</dd>
          <dt><tt>restitution_basis</tt>:</dt><dd>string, required.
          <tt>released</tt> or <tt>price</tt>.</dd>
          <dt><tt>remainder_to</tt>:</dt><dd>string, optional.
          <tt>buyer</tt> or <tt>sink</tt>; <tt>sink</tt> when absent.</dd>
          <dt><tt>verifier_fee</tt>:</dt><dd>amount, optional. Paid from
          the fund at each Verdict; <tt>0.00</tt> when absent.</dd>
          <dt><tt>principal_on</tt>:</dt><dd>string, required. The event at
          which the price moves to the Seller: <tt>verdict</tt> (a PASS
          Verdict), <tt>delivered</tt>, or <tt>window-closed</tt>.</dd>
          <dt><tt>assurance</tt>:</dt><dd>object, required. <tt>mode</tt>
          (<tt>certain</tt>, <tt>committed-sample</tt> or <tt>open</tt>),
          <tt>q_min</tt> (a number greater than zero and at most one) and,
          under <tt>committed-sample</tt>, <tt>sample_rate</tt> (a number
          greater than zero and at most one: the declared fraction of
          deliveries verified; the draw MUST derive from a seed the Buyer committed before the Delivery was submitted, combined with the Delivery's digest; how the seed is committed is outside the
          profile).</dd>
        </dl>
        <t>This profile defines no Challenge deposit; a Facilitator that
        advertises <tt>challenge_deposit</tt> does not do so under this
        profile.</t>
        <t>The -01 revision's four release modes map onto <tt>flow</tt> and
        <tt>principal_on</tt> as <xref target="changes"/> shows.</t>
      </section>

      <section anchor="profile-accounts"><name>Accounts</name>
        <t>Three internal accounts, opened empty: <tt>escrow</tt>,
        <tt>bond</tt>, <tt>fund</tt>. External accounts, unbounded as sources
        and sinks: <tt>buyer</tt>, <tt>seller</tt>, <tt>verifier</tt>,
        <tt>challenger:&lt;kid&gt;</tt> for each Challenger, and
        <tt>sink</tt>. Closure requires the three internal accounts to hold
        zero after the last entry.</t>
      </section>

      <section anchor="profile-admission"><name>Admission</name>
        <t>At <tt>accepted</tt> the profile evaluates, exactly and in the
        contract's currency, with P the price, B <tt>seller_bond</tt>, q
        <tt>assurance.q_min</tt>, and E equal to P when <tt>principal_on</tt>
        is <tt>delivered</tt> and zero otherwise:</t>
        <artwork type="ascii-art"><![CDATA[
        B  >=  P * (1 - q) / q  +  E
        ]]></artwork>
        <t>and reports <tt>assurance-constraint-unsatisfied</tt> when it does
        not hold, or when <tt>assurance.mode</tt> is <tt>open</tt> alone. The
        inequality is the classical deterrence bound
        (<xref target="POLINSKY99"/>; <xref target="BELENKIY08"/> Theorem 1
        for outsourced computation), with E the one term the -01 revision added: principal that moves before any Verdict is outside what the Verifier's check can withhold, so it raises what the Seller must post one for one. The bound deters nonconformance against that check and says nothing about what a later Challenge recovers; after a PASS is overturned the restitution of the schedule is bounded by the bond and the cap, whatever <tt>principal_on</tt> was. A
        contract whose <tt>seller_bond</tt> or <tt>verification_fund</tt>
        exceeds <tt>cap</tt> is reported as
        <tt>parameters-inconsistent</tt>.</t>
        <t>The rule is falsified, and this profile with it, if the constraint
        proves unworkable at the prices and verification costs real
        deployments exhibit. That was the -01 revision's own failure
        condition, restated here where the rule now lives.</t>
      </section>

      <section anchor="profile-schedule"><name>Schedule</name>
        <t>For each event the schedule emits the entries below, in the order
        listed, omitting any entry whose amount is zero. Every event of
        <xref target="tab-events"/> not named here emits nothing. Amounts
        are computed from the contract and the trace prefix; "released" is
        the sum of <tt>principal</tt> entries emitted so far.</t>
        <dl>
          <dt><tt>funded</tt>:</dt><dd>buyer to escrow, P, <tt>lock</tt>;
          seller to bond, B, <tt>bond</tt>; seller to fund,
          <tt>verification_fund</tt>, <tt>fund</tt>.</dd>
          <dt><tt>delivered</tt>:</dt><dd>if <tt>principal_on</tt> is
          <tt>delivered</tt>: escrow to seller, the escrow balance,
          <tt>principal</tt>.</dd>
          <dt><tt>verdict</tt>:</dt><dd>fund to verifier, the lesser of
          <tt>verifier_fee</tt> and the fund balance,
          <tt>verification</tt>; then if the outcome is PASS, no Challenge is
          answered, and <tt>principal_on</tt> is <tt>verdict</tt>: escrow to
          seller, the escrow balance, <tt>principal</tt>.</dd>
          <dt><tt>window-closed</tt>:</dt><dd>if <tt>principal_on</tt> is
          <tt>window-closed</tt> and the standing Verdict is not FAIL: escrow
          to seller, the escrow balance, <tt>principal</tt>.</dd>
          <dt><tt>terminal</tt>, FINAL:</dt><dd>escrow to seller, the escrow
          balance, <tt>principal</tt>; bond to seller, the bond balance,
          <tt>return</tt>; fund to seller, the fund balance,
          <tt>fund-return</tt>.</dd>
          <dt><tt>terminal</tt>, ABANDONED:</dt><dd>escrow to buyer, the
          escrow balance, <tt>reverse</tt>; bond to seller, the bond balance,
          <tt>return</tt>; fund to seller, the fund balance,
          <tt>fund-return</tt>. The -01 revision said the bond was slashed "to the extent of" the basis here, and its Section 5.3 defined the basis as an amount, the value already released or the full price, without relating either to a loss; with the price reversed the Buyer's loss is zero under either basis, so this profile slashes nothing here, which under basis <tt>price</tt> is a departure.</dd>
          <dt><tt>terminal</tt>, SETTLED:</dt><dd>in five ranks, each drawing
          only what remains. (1) escrow to buyer, the escrow balance,
          <tt>reverse</tt>. (2) if <tt>challenge_upheld</tt>: fund to the
          Challenger whose Challenge the standing Verdict answers, the lesser
          of that Challenge's <tt>costs</tt> when stated in the contract's currency (otherwise nothing) and the fund balance,
          <tt>costs</tt>. (3) bond to buyer, the lesser of the bond balance, the cap room and the Buyer's loss, <tt>restitution</tt>; the loss
          is "released" under basis <tt>released</tt> and P minus the rank-1
          entry under basis <tt>price</tt>, which coincide under this schedule, since every principal entry moves the whole escrow balance; the parameter is kept for a profile that adds partial release. (4) if <tt>challenge_upheld</tt>: bond to that Challenger, the lesser of the bond balance and the cap room, <tt>bounty</tt>. (5) bond to buyer or sink per <tt>remainder_to</tt>, the lesser of the bond balance and the cap room, <tt>remainder</tt>. Then bond to seller, the bond balance, <tt>return</tt>, which is what the cap kept; then fund to seller, the fund balance, <tt>fund-return</tt>. The cap room at each rank is <tt>cap</tt> less what the entries so far have moved out of the bond.</dd>
        </dl>
        <t>Ranks 2 and 4 pay one Challenger, the one whose Challenge the standing Verdict answers. The -01 revision required the reward to be non-exclusive, paying every independent discoverer in full; one bond cannot fund that for two discoverers, so this profile pays one and records the departure here. A Challenge that was not answered by the
        standing Verdict, whether lapsed, rejected or superseded, receives
        nothing. Rank 4 gives the whole remaining bond, because the -01
        revision forbade capping it at a fraction chosen for tidiness and
        fixed no figure; a profile owner who wants a different rule changes
        this line and the vectors with it.</t>
      </section>

      <section anchor="profile-vectors"><name>Vectors</name>
        <t>With P 180.00, B 18.00, fund 0.50, cap 180.00, basis
        <tt>released</tt>, remainder to <tt>sink</tt>, no verifier fee,
        <tt>principal_on</tt> <tt>verdict</tt>, assurance <tt>certain</tt>
        with q 1.0, under the <tt>verdict-first</tt> flow, and a Challenge
        claiming costs of 1.20. Amounts are in USDC. Trace indexes count
        from zero. The lists below are what <tt>vectors.json</tt> carries
        for the two paths in the figures of this document; the repository's file also carries the SETTLED-by-Verifier, ABANDONED, verdict-lapsed and delivery-first paths, the <tt>price</tt> basis, and two admission vectors, one refused and one admitted at the boundary of the constraint.</t>

        <figure anchor="fig-vector-final">
          <name>FINAL: the path of <xref target="fig-flow"/></name>
          <artwork type="ascii-art"><![CDATA[
 trace   0 accepted  1 funded  2 delivered  3 verdict PASS
         4 window-opened  5 window-closed  6 children-final
         7 terminal FINAL

 event  from     to        amount   code
   1    buyer    escrow    180.00   lock
   1    seller   bond       18.00   bond
   1    seller   fund        0.50   fund
   3    escrow   seller    180.00   principal
   7    bond     seller     18.00   return
   7    fund     seller      0.50   fund-return
          ]]></artwork>
        </figure>

        <figure anchor="fig-vector-overturned">
          <name>SETTLED on an upheld Challenge: the path of <xref target="fig-dispute"/></name>
          <artwork type="ascii-art"><![CDATA[
 trace   0 accepted  1 funded  2 delivered  3 verdict PASS
         4 window-opened  5 challenge  6 verdict FAIL (answers 5,
         supersedes 3)  7 children-final  8 terminal SETTLED,
         challenge_upheld true

 event  from     to               amount   code
   1    buyer    escrow           180.00   lock
   1    seller   bond              18.00   bond
   1    seller   fund               0.50   fund
   3    escrow   seller           180.00   principal
   8    fund     challenger:<kid>   0.50   costs
   8    bond     buyer             18.00   restitution
          ]]></artwork>
        </figure>

        <t>In the second vector rank 1 emits nothing because the escrow is
        empty, rank 2 pays the lesser of 1.20 and the fund's 0.50, rank 3
        pays the whole bond because the Buyer's loss (180.00 released) exceeds
        it, and ranks 4 and 5 and the fund return emit nothing because
        nothing remains. Both lists satisfy closure: after the last entry the
        three internal accounts hold zero.</t>
      </section>
    </section>

    <section anchor="changes"><name>Changes from -01</name>
      <t>This revision separates the protocol from the meaning of its terms.
      The -01 revision, in its title, abstract, Section 1.2 and throughout,
      made who owed whom the subject of the document; one reader on the IETF dispatch list, Rich Salz, read it in September 2026 as a legal framework with a protocol attached, and another, John C Klensin, wrote that its framing was tied closely enough to legal terminology that the IETF was the wrong place to evaluate it; both were right. What
      follows is the list of what changed, with the wire consequences
      first.</t>
      <ul>
        <li>The <tt>pact</tt> version is 0.2 and every committed digest
        changed (<xref target="example"/>).
        The -01 digests were computed by a canonicalizer that serialized
        the number one as <tt>1.0</tt>, which <xref target="RFC8785"/>
        does not allow, so the <tt>spec_hash</tt> and <tt>vtc_hash</tt>
        the -01 revision printed are not what a conforming implementation
        computes over the -01 example objects. V-25 in
        <xref target="conf-vectors"/> pins the rule and the -02 examples
        were minted after the correction.</li>
        <li>The <tt>liability</tt> member is gone. A contract carries
        <tt>terms</tt>: a profile URI, a digest over the profile's bundle,
        and an opaque parameter object (<xref target="terms"/>). The -01
        figures are the parameters of the profile in
        <xref target="appendix-profile"/>. <tt>assurance</tt> moved into
        that profile's parameters; <tt>parent</tt> moved to the top level
        and gained <tt>facilitator</tt>.</li>
        <li>The four release modes are replaced by three flows and a
        profile parameter: <tt>on-verification</tt> is
        <tt>verdict-first</tt> with <tt>principal_on</tt> <tt>verdict</tt>;
        <tt>on-window</tt> is <tt>delivery-first</tt> with
        <tt>window-closed</tt>; <tt>optimistic</tt> is
        <tt>delivery-first</tt> with <tt>delivered</tt>;
        <tt>unsecured</tt> is <tt>no-window</tt> with <tt>delivered</tt>
        (<xref target="flows"/>).</li>
        <li><tt>verification.max_verdict_seconds</tt> is added, with the
        <tt>verdict-lapsed</tt> event, so a silent Verifier cannot hold a
        contract in DELIVERED forever (<xref target="verdicts"/>).</li>
        <li>The Work Attestation is the Outcome Record, with the RATS
        collision explained (<xref target="related"/>). Its <tt>subject</tt>,
        <tt>role</tt>, <tt>amounts</tt> and <tt>outcome</tt> vocabulary are
        replaced by <tt>parties</tt>, an <tt>outcome</tt> object, the full
        trace, and <tt>terms_result</tt> (<xref target="outcomes"/>). One
        record per contract.</li>
        <li>Every response is a signed Contract Status carrying the trace,
        replacing the unsigned <tt>state</tt> member the -01 revision added
        to echoed objects (<xref target="status"/>).</li>
        <li>The event trace and the state machine over it are new
        (<xref target="events"/>); RELEASING and PROPOSED are gone,
        AWAITING_CHILDREN is added.</li>
        <li><tt>delivery_hash</tt> covers the Delivery's signature; every
        digest covers the signature set (<xref target="conventions"/>).
        Signature sets are sorted and ECDSA is low-S
        (<xref target="conf-sig"/>). Merkle leaves cover signatures
        (<xref target="merkle"/>).</li>
        <li>A nonconformant Delivery is refused and recorded nowhere; the
        -01 revision treated it as a FAIL Verdict
        (<xref target="delivery"/>). The Buyer countersignature sentence is
        withdrawn.</li>
        <li>A Verdict may carry <tt>challenge_hash</tt>; a Challenge may
        carry <tt>costs</tt>; a Seller-signed Challenge is refused
        (<xref target="verification"/>).</li>
        <li>Contract trees work across Facilitators: child registration,
        child outcome supply, <tt>child-unresolved</tt>, a finite latest
        finality instant per contract and the rule L(child) before
        L(parent); the depth and cycle rules are withdrawn with the reason
        (<xref target="trees"/>). The -01 Section 10.2, which had liability cascade upward as recovery and not downward as discharge, is withdrawn to the profile; <xref target="tree-timing"/> says only that this document does not state what a child's outcome means for its parent.</li>
        <li>Section 3 is a data dictionary and a role table
        (<xref target="dictionary"/>); no sentence in it requires anything of
        a party.</li>
        <li>Media types move to the vendor tree; the two registries and
        the <tt>pact-escrow</tt> row are withdrawn; problem types move to a
        tag URI namespace and the table lists every type the implementation
        emits (<xref target="iana"/>).</li>
        <li>Retrieval is restricted by default and fetch discipline is
        stated (<xref target="sec-retrieval"/>, <xref target="sec-fetch"/>).
        The threat model says plainly what is enforced against a
        Facilitator, which is nothing, and what is attributable
        (<xref target="sec-facilitator"/>).</li>
        <li>The experiment is restated over protocol observables
        (<xref target="experiment"/>).</li>
        <li>A contract carries exactly one signature per party and no other;
        the -01 revision accepted further signers (<xref target="conf-rules"/>).</li>
        <li><tt>verification.arbiter</tt> is withdrawn; nothing read it.</li>
        <li>The capability document gains <tt>issued_at</tt> and
        <tt>retrieval</tt>, and its flows must list <tt>verdict-first</tt> (<xref target="flows"/>). The
        well-known URI is registered provisionally, with the author as change
        controller.</li>
        <li>A Verdict is accepted while one stands only in answer to a
        Challenge (<xref target="events"/>).</li>
        <li>The -01 rule that confidential content MUST NOT declare open
        assurance is the profile's now; <xref target="profile-admission"/>
        refuses open assurance alone.</li>
        <li><tt>signature-invalid</tt> and <tt>signature-missing</tt> are 400
        and not 401, since no HTTP authentication scheme is involved; V-26
        names the protected-header members a verifier rejects
        (<xref target="conf-sig"/>).</li>
        <li><xref target="implstatus"/> names the repository licence, Apache License 2.0; the -01 said Revised BSD, which was wrong.</li>
        <li><tt>alg</tt> names are the fully specified ones of <xref target="RFC9864"/>, <tt>Ed25519</tt> for an Ed25519 key; the polymorphic <tt>EdDSA</tt> identifier the -01 used is refused.</li>
      </ul>
    </section>

    <section anchor="acks" numbered="false"><name>Acknowledgements</name>
      <t>On the IETF dispatch list in September 2026, Rich Salz read the -01
      revision as a legal framework with a protocol attached and said so, and
      John C Klensin wrote that the framing of its terms was tied closely enough
      to legal terminology that the IETF was the wrong place to evaluate it.
      Both were right; this revision's split between records and terms is
      the consequence, and the author is grateful for the reading. The UTF-16 key-ordering vector that exposed
      a latent canonicalization defect in the reference validator, and the
      formulation of verifier independence as a relation the evaluator
      derives rather than a field the record declares, came from Tersign
      (wowlegend) on x402-foundation/x402 issue 3065. The observation that
      verification tiers say how work is checked and never who checks it
      came from msaleme on the same thread. Rich Smith's A2A Settlement
      Extension was the clearest instance of the pattern the -01 revision
      corrected, and he engaged with the critique on a2aproject/A2A
      discussion 1576.</t>
    </section>
  </back>
</rfc>
