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The State Machine defines how an ad moves through verified stages of engagement — exposure, click, and conversion.
It ensures each serve_token transitions in one direction only, making billing and verification deterministic.

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1. TL;DR

The AIP state machine controls how an ad progresses from exposure to conversion, ensuring no event is double-counted or reversed.

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2. Why it matters

In legacy ad systems, duplicate impressions, repeated clicks, or delayed conversions often lead to inaccurate billing.
AIP eliminates this by applying finite state logic — each serve token can only exist in one state at a time, with defined transitions. This makes every transaction:
  • Verifiable
  • Reproducible
  • Auditable

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3. State diagram

Each state represents a billing condition. Once a token moves forward, it cannot regress (e.g., a converted ad cannot revert to “clicked”).

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4. State transitions

FromToTriggerVerified By
PENDINGEXPOSEDcpx_exposure eventPlatform
EXPOSEDCLICKEDcpc_click eventPlatform + Ad Network
CLICKEDCONVERTEDcpa_conversion eventBrand Agent + Ad Network
EXPOSEDFINALIZEDTimeout (no click)Ad Network
CLICKEDFINALIZEDTimeout (no conversion)Ad Network
CONVERTEDFINALIZEDLedger processedAd Network
Any StateREFUNDEDRefund requestAd Network
AIP defines strict expiration windows:
  • Exposure → Click: 30 minutes
  • Click → Conversion: 24 hours
  • Settlement: Once per billing cycle

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5. Example lifecycle

  1. Auction completes, serve_token generated → state = PENDING
  2. Platform logs an exposure → state = EXPOSED
  3. User clicks the ad → state = CLICKED
  4. User completes signup → state = CONVERTED
  5. At the end of the billing cycle → state = FINALIZED
Each transition is timestamped and recorded in the ledger.

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6. How it prevents double billing

Because every event must follow a defined transition:
  • Two exposures for the same token are ignored.
  • A click without prior exposure is invalid.
  • A conversion without a verified click is rejected.
This guarantees billing integrity and logical consistency across all participants.

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7. Ledger integration

Every final state is logged to the Ad Network ledger, ensuring:
  • Immutable event chains
  • Deterministic reconciliation
  • Verified payout records
{
  "serve_token": "stk_abcxyz123",
  "session_id": "s_001",
  "platform_id": "pf_chatapp",
  "agent_id": "ag_123",
  "auction_id": "auc_981",
  "state": "FINALIZED",
  "final_unit": "CPA",
  "final_charge": "10.00",
  "currency": "USD",
  "timestamps": {
    "auction": "2025-11-11T18:00:00Z",
    "exposure": "2025-11-11T18:00:00Z",
    "click": "2025-11-11T18:02:00Z",
    "conversion": "2025-11-11T18:30:00Z",
    "finalized": "2025-11-11T19:00:00Z"
  }
}
For complete ledger schema, see: Ledger Record Schema

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8. Guarantees

  • State transitions are one-directional and irreversible.
  • Each transition is signed by at least one verifier.
  • Expired states auto-close for settlement.
  • Finalized ledgers are immutable and audit-safe.

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Summary

The AIP state machine enforces a single source of truth for every ad — preventing duplicates, enforcing fairness, and keeping the ecosystem financially clean.