> For the complete documentation index, see [llms.txt](https://hyperpnl.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperpnl.gitbook.io/docs/architecture/smart-contracts.md).

# Smart Contracts

Smart contracts are used in HYPERPNL to enforce trust where off-chain execution alone is not sufficient.

Trading is executed off-chain for performance, but fund movements and final outcomes are enforced on-chain. This ensures that critical actions cannot be altered or overridden manually.

HYPERPNL uses three core smart contracts:

* **Payment Router**\
  Handles challenge purchases and routes incoming funds according to predefined rules.
* **Payout Treasury**\
  Holds payout liquidity and executes trader payouts based on verified outcomes.
* **Data Recorder**\
  Records user-verified commitments and final challenge outcomes as immutable on-chain data.

At defined points, outcomes are verified through user signatures and recorded by the Data Recorder.\
Payouts can only be executed if the recorded outcome authorizes them.

HYPERPNL’s trust model relies on enforceable contracts and public verification, not discretionary control.