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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