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8 changes: 7 additions & 1 deletion CONTEXT.md
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Expand Up @@ -53,14 +53,20 @@ quote parameters and endpoint fields, but quote-backed minting and melting share
saga shape for outputs, inputs, proof state, and recovery.
_Avoid_: Method flow, payment workflow

**Quote Observation**:
A mint response that reports the current remote state of a quote and is recorded into Coco's
canonical quote row before any Quote-backed Operation is advanced from it.
_Avoid_: Quote refresh, subscription update

**Payment Method Capability**:
A mint-advertised statement that a payment method supports a unit for minting or melting. Coco
derives payment method capabilities from NUT-04 and NUT-05 mint metadata.
_Avoid_: Payment option, method support flag

**Melt Quote State**:
The mint's settlement state for a melt quote. `PAID` is terminal, while `PENDING` can return to
`UNPAID` when settlement fails.
`UNPAID` when settlement fails; a newer `UNPAID` observation can therefore be more accurate than an
older `PENDING` observation.
_Avoid_: Payment status, melt lifecycle

**Restore**:
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@@ -0,0 +1,7 @@
# Quote observations precede operation advancement

Coco records a Quote Observation into the canonical quote row before advancing any Quote-backed
Operation from that observation. Watchers therefore observe and persist quote state, while separate
operation processors react to quote update events and call the operation saga; this keeps remote
quote observation separate from proof mutation and prevents future maintainers from folding
subscription handling directly into operation finalization.
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