> For the complete documentation index, see [llms.txt](https://worldxc.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://worldxc.gitbook.io/docs/product/wallet-system.md).

# Wallet System

Wallet correctness is the foundation of exchange credibility.

<figure><img src="/files/2qhjCwZRnkqbbXiHQcU9" alt=""><figcaption></figcaption></figure>

#### Purpose

Wallet systems must guarantee:

* Balances are correct
* Asset movements are controlled
* Statuses are visible and auditable
* Reconciliation is continuous
* User disputes can be resolved with logs and reason codes

#### Balance Model

WorldX uses explicit balance states:

* **Available**: Tradable/withdrawable
* **In Orders:** Reserved for open orders
* **Pending Withdrawal:** Requested but not settled
* **On Hold:** Restricted by policy (risk/compliance/security)

Every balance change has:

* Timestamp
* Event type
* Reference (tx hash, order id, case id)
* Reason code when applicable

#### Deposits Workflow

1. User selects asset + network
2. The system provides address and memo/tag rules
3. System detects inbound tx
4. **Status transitions:** Detected → Confirming → Credited
5. Credit only occurs after the chain confirmation policy is met
6. The deposit record includes network, tx hash, confirmations, and credit time

**Deposit Edge Cases**

* **Wrong network:** handled under Asset Recovery Policy (Appendix template)
* **Missing memo/tag:** recovery may be possible, but not guaranteed
* **Reorg/finality events:** credit policy may delay final credit; disclosure required
* **Unsupported assets:** clear rejection with reason codes

#### Withdrawals Workflow

1. User submits withdrawal details
2. System runs security + risk checks
3. Status transitions: Requested → Approved/Review → Broadcast → Confirmed
4. User sees tx hash once broadcast
5. Reconciliation validates the settlement and final status

**Withdrawal Control Guarantees (Public)**

WorldX enforces:

* MFA requirement
* Cooldown after security changes
* Velocity limit categories
* Anomaly detection categories
* Manual review for suspicious cases
* Monitoring of outbound flow

Exact thresholds remain private.

**Withdrawal Edge Cases**

* **Chain congestion:** delays are disclosed as “network conditions”
* **High-risk flags:** request moves to “Review” with a user-visible status and timeline range
* Address change just before withdrawal: triggers stricter checks
* **Failed broadcast:** retry logic + user notification
* **Chain halts:** transparent status; funds remain safe internally

#### Reconciliation Discipline

**Reconciliation compares:**

* Total user liabilities (sum of balances)
* Operational holdings (on-chain wallets under custody)
* Pending deposits/withdrawals
* Fee and operational accounts

Exceptions trigger investigation and may generate a Trust Hub incident entry if user-impacting.