> ## Documentation Index > Fetch the complete documentation index at: https://developers.circle.com/llms.txt > Use this file to discover all available pages before exploring further. # StableFX technical guide > Technical implementation details for StableFX StableFX is a foreign exchange (FX) platform that enables onchain stablecoin conversion between fiat-backed currencies such as USDC and EURC. Built on [Arc](https://docs.arc.io), StableFX combines offchain Request-for-Quote (RFQ) execution with onchain settlement. This allows you to execute stablecoin FX transactions that are fast, auditable, and programmable. **Note:** The StableFX execution engine provides offchain API methods for performing the onchain settlements. It's possible to integrate with StableFX without broadcasting any onchain transactions. ## Architecture StableFX is composed of modular layers that form the FX infrastructure:

StableFX uses an RFQ model for pricing. A taker (for example, a fintech, exchange, or corporate treasury) requests a quote for a supported stablecoin pair. Approved makers (liquidity providers) return executable quotes. ### Execution engine The execution engine is the offchain API that manages RFQ distribution, validation, and quote ranking between takers and makers. It provides an offchain API that can be used for price discovery, quote creation, and trade execution. The execution engine collects signatures and broadcasts them to the onchain contract for participants in StableFX. ### Settlement contract The settlement contract is the smart contract on Arc that performs onchain escrow and delivery of both sides of a trade. Participants in StableFX can use the execution engine to submit their onchain transactions, or integrate with the smart contract directly, depending on their technical requirements. ## Quote request and trade execution The following sections describe the quote request and trade execution process. ### API keys The StableFX API uses your API key for authentication and to determine which data to use and which blockchain to execute against. You will initially receive a `TEST` API key which executes against Arc testnet. When you are ready to move to production, you can request a `LIVE` API key which executes against Arc mainnet. ### Quote request Takers use the StableFX API to request quotes. The taker can specify the amount of the sell currency or the buy currency in the quote request. The full quote request has the following properties: * `from.currency`: The currency of the sell currency * `from.amount`: The amount of the sell currency * `to.currency`: The currency of the buy currency * `to.amount`: The amount of the buy currency * `tenor`: The settlement schedule for the trade The `tenor` parameter specifies how long the trade should take to settle. The available settlement schedules are `instant`, `hourly`, and `daily`. * `instant`: the settlement window is 30 minutes from trade creation * `hourly`: the settlement window is 1 hour from trade creation * `daily`: the settlement window is 1 day from trade creation The taker receives a quote response from the execution engine, depending on the maker responses. The response time from RFQ submission to quote response is less than 500 ms. The execution engine takes the best priced quote from all maker responses. The quote response contains a summary of the quote, the StableFX fee, and the expiry of the quote. For a full specification of the quote request and response, see the [Request a quote](/api-reference/stablefx/all/create-quote) endpoint. Quote requests can fail. Common reasons for failure include: * Invalid currency pair * Amount less than the minimum trade amount (\< 10 USDC) ### Quote flow and fee calculation The quote flow varies depending on what the taker specifies in their quote request. **If the taker specifies an amount of the buy currency:** 1. StableFX calculates the taker fee in the sell currency and adds the fee on top of the requested buy amount when requesting a quote from Talos 2. Talos returns a quote for the combined amount 3. StableFX returns to the taker the quoted combined amount and the fee in the buy currency; the taker understands that they receive the combined amount minus the fee This flow ensures that the maker and the taker view the same quote amount, while the fee is transparent to the taker. **If the taker specifies an amount of the sell currency:** 1. StableFX sends the requested sell amount to Talos with no fee adjustment 2. Talos returns a quote for the requested sell amount 3. StableFX returns both the from and to amounts to the taker and separately adds the taker fee in the sell currency The maker fee is not shown to the taker. ### Maker quote response StableFX requests quotes from makers via the Talos platform. Makers choose the rate of exchange for their quote response. Circle has a subaccount in Talos for each settlement tenor. For makers, each subaccount is a unique customer, so through Talos they must support each of the settlement tenor customers. ### Quote acceptance The taker accepts the quote by creating a trade through the execution engine. Creating the trade requires the quote ID and a randomly generated idempotency key. At this point, the quoted rate is locked in. This rate lock lasts until the trade expires, is settled, or is breached. ## Trade signature broadcasting After the taker confirms the quote, the maker and taker submit their trade signatures to StableFX. StableFX verifies the signatures and broadcasts a contract function call to the smart contract. There is a 10 minute window for the maker and taker to submit signatures, or the trade will expire. The broadcast parameters include the maker and taker details including the trade consideration and signatures. ## Trade settlement The `FxEscrow` smart contract is used to settle the trade. This contract uses the `Permit2` contract to allow it to pull a specified amount of currency from the maker and taker wallets to the contract. ### Settlement model StableFX implements a settlement model that is characterized by: * Explicit taker funding * Maker-triggered settlement When settlement occurs, the StableFX smart contract makes the following token transfers: * **To the taker**: the buy currency minus the taker fee * **To the maker**: the sell currency minus the maker fee * **To the StableFX fee wallet**: the StableFX taker fee in the buy currency and the StableFX maker fee in the sell currency This ensures net settlement while maintaining transparency and alignment with the quote presented to both parties. ### Wallets and funding Makers and takers can use any Arc supported wallet to fund trades. Both makers and takers must use the same wallet throughout the course of a single trade. Wallets must be individually owned and not omnibus wallets. Wallets must support the [`Permit2`](https://docs.uniswap.org/contracts/permit2/overview) contract and be capable of signing EIP-712 typed data without broadcasting the transaction. Users must approve the `Permit2` contract through the specific token contract they're using to fund trades. ### Taker funding To fund trades, the taker submits a signed `Permit2` request to the `FxEscrow` smart contract for trades with `pending_settlement` status using the contract trade identifiers. This can be done with the StableFX API or by directly transacting with the `FxEscrow` contract. The contract holds the taker funded tokens until the trade is settled or breached. ### Maker funding The maker initiates a settlement transaction by funding trades that have been taker funded. When a maker identifies trades with status `taker_funded` they can submit a fund request to the FxEscrow smart contract. This can be done with the StableFX API or by directly transacting with the FxEscrow contract. #### Maker net funding Makers can fund the net position of their accumulated trades with a given taker. This is done by calculating the net position and only submitting the funds required to cover the net position. For example, if a maker has an open trade with a taker where they are selling 100 USDC and buying 90 EURC, and another open trade with the same taker where they are selling 90 EURC and buying 100 USDC, their net position is 0. They would not need to submit any funds to the `FxEscrow` contract.