> For the complete documentation index, see [llms.txt](https://docs.txflow.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.txflow.com/txflow-l1/settlement.md).

# Settlement

### Settlement Model

Channels do not maintain independent settlement systems.

All settlements occur through TxFlow L1.

### Benefits

* Shared Finality
* Shared Liquidity
* Shared Accounting

### Flow

```
Trade
   │
Settlement Request
   │
L1 Processing
   │
State Update
```