// ============================================================================
// LETTER OF CREDIT — the bank pays against verified documents, never trust
// ============================================================================
//
// A documentary letter of credit (UCP 600) exists because exporter and
// importer don't trust each other across an ocean: the bank promises to
// pay the seller, but ONLY against documents proving shipment. The classic
// loss is paying on presented-but-unexamined documents — the Salomon-era
// trade-finance frauds ran exactly this gap, with bills of lading for
// cargo that never sailed. Here `honored` is reachable only through
// `docs_verified`; presenting is not verifying; partial drawings draw down
// a credit slot that refuses to go below zero, so the beneficiary can
// never draw more than the credit line. Expired credits are terminal.
// ============================================================================

cell LetterOfCredit {
    face {
        signal issue(id: String, credit: Int) -> Map
        signal present_docs(id: String) -> Map
        signal verify_docs(id: String, conforming: Bool) -> Map
        signal honor_drawing(id: String, amount: Int) -> Map
        signal expire(id: String) -> Map
        signal undrawn(id: String) -> Int
    }

    memory {
        // the credit line — drawings reduce it, and it cannot go negative:
        // an over-drawing is a rejected write, not an accounting incident
        credit: Map<String, Int> [persistent, consistent]
        invariant credit >= 0
    }

    // honored and expired are terminal. The fraud edge — issued (or even
    // docs_presented) straight to honored — does not exist: payment
    // happens only from docs_verified.
    state loc {
        initial: applied
        applied -> issued
        issued -> docs_presented
        issued -> expired
        docs_presented -> docs_verified
        docs_presented -> discrepant
        discrepant -> docs_presented
        docs_verified -> honored
    }

    on issue(id: String, credit_amt: Int) {
        if credit_amt <= 0 { return map("ok", false, "reason", "bad credit") }
        transition(id, "issued")
        credit.set(id, credit_amt)
        return map("ok", true, "credit", credit_amt)
    }

    on present_docs(id: String) {
        transition(id, "docs_presented")
        return map("ok", true, "state", get_status(id))
    }

    on verify_docs(id: String, conforming: Bool) {
        if conforming {
            transition(id, "docs_verified")
        } else {
            transition(id, "discrepant")   // seller may cure and re-present
        }
        return map("ok", true, "state", get_status(id))
    }

    on honor_drawing(id: String, amount: Int) {
        if amount <= 0 { return map("ok", false, "reason", "bad amount") }
        if get_status(id) != "docs_verified" {
            return map("ok", false, "reason", "documents not verified")
        }
        let line = credit.get(id) ?? 0
        credit.set(id, line - amount)      // raises if drawing exceeds credit
        transition(id, "honored")          // now provably valid
        return map("ok", true, "paid", amount, "undrawn", line - amount)
    }

    on expire(id: String) {
        transition(id, "expired")          // only an un-presented credit expires
        return map("ok", true, "state", get_status(id))
    }

    on undrawn(id: String) {
        return credit.get(id) ?? 0
    }
}

cell test LocTests {
    rules {
        assert issue("loc1", 80000).ok == true
        // PAY ON TRUST: honored without documents — the edge does not exist
        assert_fails transition("loc1", "honored")
        assert present_docs("loc1").ok == true
        // presented is NOT verified: still no payment edge
        assert_fails transition("loc1", "honored")
        // discrepant docs bounce back for cure, then re-present
        assert verify_docs("loc1", false).state == "discrepant"
        assert_fails transition("loc1", "honored")
        assert present_docs("loc1").ok == true
        assert verify_docs("loc1", true).state == "docs_verified"
        // OVER-DRAWING: 90k against an 80k credit — the slot refuses
        assert_fails honor_drawing("loc1", 90000)
        assert undrawn("loc1") == 80000
        assert honor_drawing("loc1", 80000).paid == 80000
        // honored is terminal: documents cannot be "re-presented" for more
        assert_fails transition("loc1", "docs_presented")
        assert_fails transition("loc1", "honored")
        assert_fails credit.set("loc1", -1)
        // an untouched credit can expire — and stays expired
        assert issue("loc2", 5000).ok == true
        assert expire("loc2").ok == true
        assert_fails transition("loc2", "docs_presented")
    }
}