A Liquidation Address is a permanent routing configuration that connects an Alfred Virtual Account to a blockchain wallet address.

When a customer receives a fiat deposit into their Alfred-generated Virtual Account, Alfred automatically converts the deposited funds into a specified digital asset (USDC or USDT) and delivers the funds to the configured blockchain address.

This enables businesses to collect fiat payments locally and automatically settle those funds on-chain.

The blockchain network and digital asset are defined when the liquidation address is created.

How Liquidation Addresses Work

The liquidation process follows this flow:

1. A customer receives a fiat deposit into their Alfred Virtual Account.
2. Alfred detects and reconciles the incoming deposit.
3. The fiat funds are converted into the configured digital asset (USDC or USDT).
4. The digital asset is sent to the registered blockchain wallet address.

This allows businesses to accept local fiat payments and automatically settle those funds into crypto wallets.