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

# Settlement Modes

Your settlement mode decides where funds go on-chain and how the GoBTC Pay service fee is collected. It is set per merchant as part of your integration agreement.

### At a glance

| Property              | Operator-settled (default)    | Direct-to-merchant               |
| --------------------- | ----------------------------- | -------------------------------- |
| On-chain destination  | A GoMining-controlled output  | A 2-of-3 multisig you co-control |
| Counterparty exposure | Unsecured credit until payout | None for settled amounts         |
| Finality              | After commercial payout       | Layer 1 at settlement            |
| On-chain outputs      | Minimal                       | One per merchant                 |
| Service fee           | Netted from the payout        | Collected on-chain at withdrawal |

### Operator-settled (default)

Each settlement pays the full cumulative amount to a GoMining-controlled output, and your payout is reconciled afterward as a commercial settlement. This keeps the on-chain output count minimal and decoupled from how many merchants you pay. The trade-off: between settlement and payout, you hold unsecured operator credit.

### Direct-to-merchant (optional)

The settlement transaction pays your cumulative amount directly to a 2-of-3 multisig you co-control, giving Layer 1 finality and no post-settlement counterparty exposure. The trade-off: one on-chain output per merchant.

Funds live in your own 2-of-3 multisig wallet, built like a user wallet from a Merchant Key, the GoMining Key, and an offline Recovery Key. GoMining cannot move them on its own, and you keep the same recovery exit path users have.

### How the service fee is charged

* **Operator-settled:** the fee is netted from the commercial payout.
* **Direct-to-merchant:** the fee is collected on-chain when you withdraw from your multisig. Withdrawals need GoMining's co-signature, which is given only when the transaction includes the agreed service-fee output. There is no separate invoice and no operator credit at any point.


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