ContraflowCancel circular debt in one transaction
Contraflow finds loops of debt between your counterparties and nets them out: USDC invoices in one transaction on Arc, and obligations in any currency with one certificate everyone signs.
One transaction nets the loop
- Company A → Company B1,000.00 → 0.00
- Company B → Company C1,000.00 → 0.00
- Company C → Company A1,000.00 → 0.00
- Netted in total
- 3,000.00 USDC
- USDC moved
- 0.00 USDC
$0 protocol fee · gas priced in USDC · permissionless settlement
Why us
Why closed-cycle netting
Built for counterparties who owe each other in a loop and want it gone in one transaction.
Finds the loop for you
When the parties you trade with owe each other in a loop, Contraflow finds it and works out how much nets off.
All or nothing
Every debt in the loop nets by the same amount in a single step, or none of them do. Nothing half-completes.
$0 protocol fee
Netting costs nothing on Contraflow today. You only pay Arc network gas.
Verifiable by anyone
Every settlement and certificate is recorded on Arc, and the contracts' source is published and verified.
Key features
What the app covers
From the first signature to a debt netted out and a record you can check.
Invoices on Arc
Both sides sign a USDC invoice with their own wallets before it's registered. When invoices form a loop, one transaction cancels the same amount off every one of them.
Obligations in any currency
Record what you owe and are owed in dollars, euros, cedis or any other currency. Obligation amounts never go onchain. Contraflow's servers can read them. Invoice amounts and parties are public on Arc.
One certificate for the whole loop
Everyone in the loop reviews their own obligations and signs one netting certificate. Once it's applied on Arc, the same debt can never be netted twice.
A receipt for every settlement
See the block, the transaction and exactly what changed for every invoice involved, all checkable on the Arc explorer.
Check any certificate yourself
Download your certificate and verify it against the ledger on Arc, in your own browser. Nothing is uploaded.
Always know where you stand
See which network you're on and what you're signing before you confirm anything.
Our values
The principles behind the protocol
Fail-safe design, permissionless settlement, and nothing left unverifiable.
Fail-safe by design
A missing signature, a broken loop or the wrong network means nothing is recorded. There's never a silent partial state.
Permissionless settlement
Anyone can trigger settlement for a valid loop. Contraflow never gates who's allowed to cancel debt that genuinely cancels.
Real figures only
Every figure you see, from the protocol stats to a receipt, comes from a real onchain event, never a placeholder.
Amounts stay offchain
Obligations are only ever shown to their two parties, and their amounts never go onchain. Onchain, only the participating addresses and a blinded record of each netting are public.
Ready to net out circular debt?
Record a debt with a counterparty, find the loop and net it, with no money changing hands.
Launch AppHow it works
How netting works
From two signatures to a loop of debt netted out, in three steps.
Sign
You and your counterparty both sign each debt with your own wallets: a USDC invoice on Arc, or an obligation in the currency you actually invoice in.
Find the loop
Contraflow finds closed loops of debt between parties and shows you exactly how much nets off before you commit to anything.
Net it
One transaction cancels a loop of invoices. For obligations, one certificate signed by everyone in the loop is recorded on Arc, so the same debt can never be netted twice.
Live on Arc
Counted from the contracts' events
Integrations
Built on Circle and Arc
Contraflow runs on Arc and Circle's infrastructure.
Pricing
$0 protocol fee
Netting costs nothing on Contraflow today. You only pay Arc network gas, priced in USDC, and recording an obligation costs nothing at all.
- Record an offchain obligation
- No gas
- Apply a netting certificate (3 obligations)
- ~$0.0042
- Attest an invoice
- ~$0.0072
- Settle a 3-invoice cycle
- ~$0.0043
- Settle a 4-invoice cycle
- ~$0.0052
- Settle a 5-invoice cycle
- ~$0.0061
Gas costs vary with network conditions. Figures above are typical, not guaranteed.
FAQs
Need more details?
How netting works, and what to expect when you use it.
What is multilateral netting?
When A owes B, B owes C and C owes A, that's a closed loop. Everyone's debt can be reduced by the same amount without any money moving. Contraflow finds those loops and nets them out.
What's the difference between invoices and obligations?
Invoices are USDC debts registered on Arc, and a loop of them cancels in one transaction. Obligations are debts in any currency that stay offchain: both parties sign them in Contraflow, and a loop nets out with one certificate everyone in it signs.
Can the same debt be netted twice?
No. Every applied certificate is recorded on Arc, and the ledger refuses any certificate that doesn't start from an obligation's current recorded state.
Is Contraflow free to use?
There's no protocol fee today. You only pay Arc network gas, and recording an obligation costs nothing at all.
What happens if a counterparty never signs?
Nothing. A debt with only one signature is never registered or netted, so there's nothing to dispute.
Can the protocol's rules change?
Yes. Contraflow's contracts are upgradeable by the team with a single administrative key, as our Terms set out.