Transaction Types and Status

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Overview

A transaction refers to the process of transferring value from one address to another. Depending on the processing method and requirements, transactions can be divided into the following two main types:

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1. Blockchain Transactions

Blockchain transactions refer to asset transfers conducted on the blockchain network. Specific types include:

• On-Chain Deposit: Users deposit assets from an external address to an on-chain address allocated by the ChainUp Custody Full Custody platform.
• On-Chain Withdrawal: Users withdraw assets from the ChainUp Custody Full Custody platform address to an external address.
• Consolidation: To better manage and custody assets, assets are consolidated to ChainUp Custody Full Custody’s custody address.

Blockchain transactions rely on confirmations from the blockchain network, which may require a certain amount of time and fees. The status of a transaction can be divided into different stages, with each stage having corresponding statuses to detail the current situation and progress of the transaction.

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2. Alliance Transfers

Alliance transfers are a fast and economical way to transfer, characterized by:

• Instant Arrival: Since blockchain processing is not involved, alliance transfers can be completed within seconds.
• 0 Fees: Alliance transfers do not require blockchain network fees, thus reducing costs.

Alliance transfers are merely changes at the ledger system level and do not involve actual blockchain transactions.

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Blockchain Transactions

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On-Chain Deposit

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Status Description

• To be confirmed (0): Scanning the blockchain, a deposit transaction from the user is detected, but funds have not yet completed the processing flow.

• Success (1): The deposit order has been processed successfully, with funds credited and transaction status updated as successful; the user can withdraw these funds at any time.

• Failed (2): An issue occurred during the deposit process, such as a network problem or system malfunction, and the transaction status is marked as abnormal.

• Pending KYT verification (4): Based on KYT policies, the deposit transaction is pending KYT service review.

• Pending manual review (KYT risk level too high) (5): Based on KYT policies, the deposit transaction requires manual review due to a high KYT risk level. The transaction status shows as pending manual review for KYT risk.

• Pending manual review (KYT Deposit Circuit Breaker) (6): The transaction triggered the system’s KYT circuit breaker mechanism, requiring manual review.

• Transferred In (7): Funds have been confirmed as transferred to the wallet but have not reached the required number of confirmations for withdrawal.

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On-Chain Withdrawal

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Status Description

• Under review by risk control (0): The user has initiated a withdrawal request, and the transaction is now pending internal risk control and ChainUp Custody system review.
• In payment (1): The transaction has completed all confirmation steps (including transaction strategy approval, KYT verification, and system review) and has been successfully signed and broadcasted, awaiting blockchain confirmation.
• Audit rejection (2): This transaction has been terminated and marked as “Audit Rejection” for one of the following reasons:

1.The order did not pass approval or triggered a risk control policy, resulting in a system rejection of the withdrawal request;

2.An abnormality occurred in the transaction, such as network issues or nonce mismatch, leading the system to revoke the transaction.

• Failed (4): If the transaction fails due to blockchain network issues or verification failure during the withdrawal process, the status will update to “Failed.”
• Success (5): The blockchain has processed the transaction, and the withdrawal is successful.
• Cancelled (6): The initiator of the withdrawal has canceled the transaction order, terminating the process and setting the status to “Cancelled.”
• Pending KYT verification (7): The withdrawal request has been submitted but is awaiting review from ChainUp Custody’s internal KYT or wallet-enabled KYT services to ensure compliance and security standards.
• Pending manual review (KYT risk level too high) (8): The withdrawal request has been flagged as a potential risk and requires manual review based on KYT policies. The transaction status is pending KYT manual review.

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Consolidation

In a centralized custody system, different types of addresses (such as Account, UTXO, and addresses containing MEMO fields) have some differences in consolidation operations and costs:

• UTXO Type (e.g., BTC) supports multiple inputs in a single transaction, and Memo Type (e.g., XRP) does not require additional consolidation operations and fees.
• Account Type (e.g., ETH and ERC20 Token) requires each transaction to pay miner (gas) fees from the initiating account, so centralized custody platforms need to periodically consolidate funds.

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Alliance Transfers

The alliance refers to a group of clients using the Custody system’s blockchain services. Clients within the alliance benefit from fast transfer speeds and zero fees when transferring to each other.