Deposit & Withdrawal Architecture

use.com's deposit and withdrawal system balances security, speed, and user experience through intelligent routing, risk-based processing, and multi-chain support.

Deposit Flow

1. Address Generation

Unique Addresses: Each user receives unique deposit addresses per asset/chain to enable automatic credit attribution.

Address Derivation: $Address_i = Derive(Master\_Key, User\_ID, Asset, Chain, Index)$

Security: Addresses derived from master key using BIP-32/BIP-44 standards, enabling recovery from seed phrase.

2. Blockchain Monitoring

Confirmation Requirements:

Chain	Confirmations	Typical Time	Instant Credit Eligible
Bitcoin	3	~30 min	Tier 3+ users
Ethereum	12	~3 min	Tier 2+ users
BNB Chain	15	~45 sec	Tier 2+ users
Polygon	128	~5 min	Tier 2+ users
Solana	32	~15 sec	All users

Monitoring Frequency: Blocks checked every 10 seconds for new deposits.

3. Credit Processing

Standard Flow:

1. Detect deposit transaction

2. Wait for required confirmations

3. Credit user account

4. Send notification

5. Update balance in real-time

Instant Credit (for trusted users):

• Credit immediately upon detection

• Set pending flag

• Reverse if transaction fails (rare)

• Risk-based limits: $10k-$100k depending on tier

Risk Formula: $Instant\_Credit\_Limit = Base\_Limit \times Tier\_Multiplier \times History\_Factor$

Withdrawal Flow

1. Request Validation

Checks Performed:

• Sufficient balance (including reserved amounts)

• Address format validation

• Sanctions screening

• Withdrawal limits (daily/monthly)

• 2FA verification

Address Validation:

• Checksum verification (prevents typos)

• Blacklist check (known scam addresses)

• Whitelist verification (if enabled)

2. Risk Scoring

$Risk\_Score = w_1 \times Device + w_2 \times Geo + w_3 \times Velocity + w_4 \times Behavioral$

Processing Tiers:

• Low Risk (< 0.3): Automatic, hot wallet, < 15 min

• Medium Risk (0.3-0.7): Enhanced verification, warm wallet, < 1 hour

• High Risk (≥ 0.7): Manual review, cold storage, < 24 hours

3. Batching Strategy

Small Withdrawals (< $10k):

• Batched every 15 minutes

• Processed from hot wallet

• Network fee optimization

Medium Withdrawals ($10k-$100k):

• Batched hourly

• Processed from warm wallet

• Enhanced monitoring

Large Withdrawals (> $100k):

• Manual review required

• Processed from cold storage

• Dual-control approval

• Batched daily

Batching Benefits: $Cost\_Savings = (Individual\_Fees \times N) - Batch\_Fee$

Example: 100 BTC withdrawals individually = 100 × 0.0001 BTC = 0.01 BTC in fees. Batched = 0.0005 BTC. Savings: 95%.

Multi-Chain Support

Chain Selection

User Options:

1. Specify Chain: User selects preferred chain

2. Auto-Select: System chooses lowest-cost chain

3. Fastest: System chooses fastest confirmation chain

Cost Comparison (Example for USDT withdrawal):

Chain	Network Fee	Confirmation Time	User Cost
Ethereum	$15	~3 min	$15.50
BNB Chain	$0.50	~45 sec	$1.00
Polygon	$0.01	~5 min	$0.51
Arbitrum	$0.10	~1 min	$0.60

Recommendation Engine: Suggests optimal chain based on amount, urgency, and cost.

Cross-Chain Bridging

Internal Bridging: When user deposits on Chain A but wants to withdraw on Chain B:

1. Accept deposit on Chain A

2. Credit internal balance

3. Process withdrawal from Chain B reserves

4. Rebalance chains periodically

Rebalancing: $Rebalance\_Amount = Target\_Balance - Current\_Balance$

Executed when chain balance deviates > 20% from target allocation.

Fee Structure

Deposit Fees

Standard: Free (use.com absorbs blockchain fees)

Exceptions:

• Small deposits (< $10): May have minimum to cover costs

• Rare chains: May pass through actual costs

Withdrawal Fees

Network Fee: Actual blockchain fee (passed through)

Processing Fee: Flat fee per withdrawal

• BTC: 0.0005 BTC

• ETH: 0.005 ETH

• Stablecoins: $5 equivalent

VIP Discounts: Reduced fees for high-volume traders

• Tier 1: 0% discount

• Tier 2: 25% discount

• Tier 3: 50% discount

• Tier 4: 75% discount

Security Features

Address Whitelisting

Optional Feature: Users can restrict withdrawals to pre-approved addresses

Activation Process:

1. User adds address to whitelist

2. 24-hour security delay

3. Email + 2FA confirmation

4. Address becomes active

Benefits: Prevents unauthorized withdrawals even if account is compromised.

Withdrawal Limits

Daily Limits (per tier):

• Tier 1: $1,000

• Tier 2: $50,000

• Tier 3: $500,000

• Tier 4: Unlimited (with monitoring)

Velocity Monitoring: $Velocity\_Score = \frac{Withdrawals_{24h}}{Average\_Withdrawals_{30d}}$

Alert triggered if score > 5.0 (5× normal activity).

Sanctions Screening

Real-Time Checks: Every withdrawal address screened against:

• OFAC SDN list

• UN sanctions list

• EU sanctions list

• UK sanctions list

Screening Latency: < 100ms per address

Match Handling:

• Exact match: Withdrawal blocked, account flagged

• Fuzzy match: Manual review required

• No match: Proceed with withdrawal

Monitoring and Alerts

Real-Time Monitoring

Metrics Tracked:

• Withdrawal success rate

• Processing time (p50, p99)

• Risk score distribution

• Blockchain confirmation times

• Hot wallet balance levels

Alert Thresholds:

• Hot wallet < 3% of assets: Replenish from warm

• Withdrawal queue > 1 hour: Investigate delays

• Risk score spike: Enhanced monitoring

• Blockchain congestion: Adjust fee estimates

Reconciliation

Daily Reconciliation: $Internal\_Balance = Deposits - Withdrawals - Fees$

Compared against blockchain balances to detect discrepancies.

Monthly Audit: Full reconciliation of all chains with third-party verification.

Disaster Recovery

Blockchain Outages

Contingency Plans:

• Switch to alternative chains for same asset

• Communicate delays to users

• Process from reserves when chain recovers

System Failures

Failover:

• Automated failover to backup systems

• Manual processing capability

• Communication protocols

Recovery Time Objective (RTO): < 1 hour for withdrawal processing restoration.

Conclusion

use.com's deposit and withdrawal architecture provides secure, efficient processing through intelligent risk scoring, multi-chain support, and automated batching. By balancing security with user experience, the system enables fast deposits and withdrawals while maintaining robust protection against fraud and operational risks.

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Related Sections:

• Wallet Infrastructure & Custody Model

• Compliance, KYC & AML Framework