Why Does SIP-4 Have a "Taken" State ? In SIP-4, creating an execution right does not immediately move the agreement into the settlement stage. Before that can happen, the counterparty must reserve the execution right by paying the Reservation Fee. The documentation defines this stage as the Taken state. The Taken state indicates that the execution right has been reserved by a counterparty. At this point, the Reservation Fee has been paid, the Guarantee Deposit has been locked, and the agreement becomes active for both parties. From this stage onward, the execution right remains valid until the expiry period ends. The holder of the right can call Execute at any time during that window. Settlement begins only after the Execute call is made. Without the Taken state, there would be no clear distinction between the creation of an execution right and the stage where both parties become bound by contractual rights and obligations. Defining this transition explicitly within the state machine makes it possible to identify the agreement's status at any moment. The Taken state also marks the point at which the Reservation Fee and Guarantee Deposit mechanisms become active. The economic rights and obligations of both parties are established from this state onward. In SIP-4, the Taken state is more than a technical label. It represents the stage where the execution right has been reserved by the counterparty and the agreement enters its active lifecycle. #standxblog# @StandX_Official @Stander_StandX