Specification v1 (Draft)

• Version: 1.0
• Status: Governance & Settlement Reference Standard
• Scope: Structured Descriptor for Evidence Records

1. Purpose

KES (Kvary Evidence Standard) defines a deterministic, reference-only evidence descriptor standard used within Kvary.Network to:

• Structure declared terms and references
• Record legal and governance references
• Define settlement lifecycle states
• Enumerate evidence requirements
• Provide anchoring and audit metadata
• Enable machine-referenceable validation

KES does not perform actions. KES describes and structures settlement reference and evidence requirements only.

Operational activities and compliance actions remain external.

2. Architectural Position

KES operates as:

• A Descriptor Layer
• A State Definition Layer
• A Settlement Metadata Container
• A Governance-Aware Schema

KES is not:

• A smart contract runtime
• A workflow automation engine
• A blockchain executor
• A decision-making authority

Settlement is recorded. Operational actions occur elsewhere.

3. Core Design Principles

3.1 Settlement-Centricity

KES defines how outcomes are recorded, verified, and anchored — not how they are carried out.

3.2 Deterministic Structure

Each descriptor:

• Has fixed state identifiers
• Has enumerated evidence categories
• Has explicit lifecycle mapping
• Avoids ambiguous transitions

3.3 Auditability

All structural components:

• Must be machine-referenceable
• Must allow version tracking
• Must support hash-based anchoring
• Must preserve immutability once anchored

3.4 Non-Action Boundary

KES does not:

• Approve
• Trigger
• Automate

It defines what must be present for settlement readiness.

4. Descriptor Structure

A valid KES descriptor MUST contain the following layers:

4.1 Descriptor Identity Layer

Fields:

• KES ID (Unique Identifier)
• Version
• Title
• Contract Type (Operational / Financial / Hybrid)
• Jurisdiction Reference
• Linked Governance Procedure ID
• Governance Case ID (if applicable)

Purpose: Provides classification and governance alignment.

4.2 Parties & Representation Layer

Each participant record MUST define:

• Entity Name
• Role
• Legal Form
• Representation Authority Reference
• Contact Metadata (optional)

Purpose: Defines accountable entities without assigning operational authority.

4.3 Operational Specification Layer (Reference-Only)

Defines:

• Inputs
• Outputs
• Dependencies
• Constraints
• Reference Procedures

This section describes structured intent only.

4.4 Legal Structure Layer

Includes:

• Governing References
• Clause Definitions
• Definitions & Interpretations
• Dispute Reference Mechanism

No compliance-control logic is embedded.

4.5 Settlement Lifecycle Model

KES defines the following canonical states:

| State | Description | | --- | --- | | Draft | Descriptor editable, not anchored | | EvidenceAttached | Required evidence references enumerated | | Anchored | Descriptor hash recorded externally | | SettlementReady | Metadata complete for review | | Finalized | Settlement metadata recorded | | Archived | Descriptor closed |

Transitions are declarative only. KES does not auto-transition.

4.6 Evidence & Verification Matrix

Evidence categories MUST be enumerated.

Minimum categories:

• Identity & Authority
• Committee Attestation
• Supporting Documents
• Financial Documentation
• External Reference (if applicable)

Each evidence entry may contain:

• Reference ID
• Hash (optional)
• Storage Location Reference
• Submission Date
• Verification Status (descriptive only)

4.7 Anchoring & Integrity Layer

Fields:

• Blockchain Anchor Hash
• Anchoring Timestamp
• Network Reference
• Committee Signature Block
• Observer Signature Block

Anchoring confirms integrity, not validity of outcome.

4.8 Financial Metadata Layer

Includes:

• Budget Amount
• Currency
• Timeline / Deadline
• Settlement Notes
• Reference Accounting IDs

No payment automation is embedded.

5. State Machine Characteristics

KES state definitions must be:

• Deterministic
• Declarative
• Side-effect free
• Idempotent in representation

Transitions are informational mappings.

Example:

Draft → EvidenceAttached → Anchored → SettlementReady

KES does not move states automatically.

6. Versioning Model

Each KES descriptor MUST:

• Declare Version
• Preserve prior version hash
• Maintain revision history

Anchored versions are immutable.

7. Machine Reference Model

KES is designed to support:

• DSL compilation
• Manifest linking
• Governance mapping
• State catalog extraction
• Evidence schema validation

Machine layer and human-readable layer remain aligned.

8. Governance Boundary Declaration

KES is not:

• An operational action engine
• A regulatory authority
• A compliance certifier
• A transaction processor

KES provides structural clarity for:

• Settlement preparation
• Integrity verification
• Audit traceability

9. Future Extensions (Non-Binding)

Potential future modules:

• Structured JSON schema export
• DSL compilation layer
• Hash validation utilities
• Cross-procedure reference linking
• Multi-anchor support

These remain optional.

10. Final Statement

KES v1 defines a settlement-first descriptor framework.

It structures intent. It records integrity. It enables verification.

It does not perform actions.