Articles on: Trading on Why do I need to 'deposit' tokens?

Why do I need to 'deposit' tokens?

The trading platform has been designed to optimise for speed, privacy, certainty of execution and cost efficiency.

Once a trade is matched on, it is executed instantly, your balance is updated and your new funds are available to trade right away. However, never has custody of your funds or those of the other traders whose orders are on the order book. So how can one be certain that all parties will honour their orders and the correct settlements will be made?

All funds corresponding to live orders are deposited in the exchange smart contract. This ensures that all orders are available to take at any time, with absolute certainty that they can be settled. This is why each user needs to deposit the funds they wish to trade into the smart contract before the transaction can be made.

To understand more about how balances are stored and updated after deposits, refer to the articles on StarkWare.

Updated on: 14/07/2022

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