10.1 Service Compensation [Dido Solutions, Inc Wiki]

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====== 10.1 Service Compensation ======
[[fxdemo:07-part:10-relationship-to-cost-recovery-compensation-and-settlement:start|Go up to Relationship to Cost Recovery, Compensation, and Settlement]]

Service Compensation recognises governed work performed by a [[dido:99_annexes:annex-b-terms-and-definitions:q:qualified_node]] or [[dido:99_annexes:annex-b-terms-and-definitions:q:qualified_service_provider]] when the applicable qualification, assignment, performance, evidence, and [[dido:99_annexes:annex-b-terms-and-definitions:c:cost_rule]] requirements are satisfied.

The Governed Node Service Market does not compensate a participant merely because it exists, connects to the market, advertises a service, or receives eligibility for a governed function. Compensation depends on completed governed work, recognised assignment, applicable Cost Rules, required evidence, and the absence of disqualifying non-performance or under-compliance conditions.

Service Compensation, therefore, links market operation to work evidence. The market identifies the eligible Qualified Node and records the assignment basis. The Qualified Node performs the governed function and records the required Work Performed Event and Evidence Reference. The [[dido:99_annexes:annex-b-terms-and-definitions:c:cost_recovery_compensation_and_settlement_plane]] uses those records to support [[dido:99_annexes:annex-b-terms-and-definitions:c:compensation_claim| Compensation Claims]] and [[dido:99_annexes:annex-b-terms-and-definitions:s:settlement_instruction| Settlement Instructions]].

Service Compensation also preserves the distinction between financial-system value and service-provider compensation. In an FX context, the exchange rate, transaction value, and settlement amount do not define the service compensation owed to a Node. The Node receives compensation for governed work, such as validation, screening, policy evaluation, evidence recording, or settlement-support processing, in accordance with the applicable Cost Rule and evidence obligations.

Service Compensation supports market discipline because lower cost does not justify weaker qualification, missing evidence, weaker security, poorer reliability, or Under-Compliance. A provider earns compensation through qualified, evidenced performance of governed work.

===== Example =====
A Qualified Node performs semantic validation for an FX transaction. The market assignment record identifies the selected Qualified Node, the accountable Qualified Service Provider, the applicable Selection Criteria, the Qualification Profile, the policy constraints, the evidence obligations, and the Cost Rule. After completing the work, the Node records a Work Performed Event and Evidence Reference. The Cost Recovery, Compensation, and Settlement Plane uses those records to support a Compensation Claim and generate the applicable Settlement Instruction.