PowerDEX Multi-Signature Wallet

PowerDEX uses multi-signature (multi-sig) technology to enable trading and keep your assets safe.

Multi-Sig wallets provide an extra layer of security by requiring the approval of multiple signers for any withdrawal of funds.

PowerDEX uses a 2-3 escrow style Multi-Signature Wallet, meaning that three signers are involved, and two of them must agree and provide a signature to authorize a withdrawal.

Key Takeaways:

  • A Multi-Sig requires the approval of multiple signers to approve any withdrawal of funds.

  • 2-3 Multi-Sig: The multi-sig wallet has three signers. To take money out, two of these three signers must agree and provide a signature.

  • Multi-Sigs are one of the most commonly used ways of storing assets securely.

How PowerDEX uses 2-3 Multi-Sig wallets:

Withdrawal process:

  • You provide a signature and send it to PowerDEX

  • PowerDEX verifies if the requested withdrawal amount falls within the limits of both the Multi-Sig and on-chain balances and the PowerDEX balances post-trading.

  • PowerDEX adds their signature and proceeds with transferring the funds out of the multi-sig.

  • Withdrawal fees are paid by the exchange.

  • If the withdrawal amount requested is not valid, the withdrawal is rejected

Settlement process:

  • Either party can request a settlement at any time, usually based on who needs the funds first.

  • PowerDEX may settle user balances at their discretion. This may happen while users are offline.

  • Likewise, users can request a settlement at any time. For example, if you wish to withdraw your funds or keep your account organized and up-to-date.

  • For these reasons, PowerDEX utilizes the services of a third-party “escrow” signer. This signer double-checks trades and balances and can sign transactions in the absence of the user.

  • At this time, on-chain settlement fees are paid by PowerDEX and the escrow signer.

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