Understanding the Dual Wallet System on BitLease

BitLease uses a dual wallet system to manage your assets effectively. Each wallet serves a distinct purpose in the Lease-to-Own (LTO) ownership structure:

• FUNDING Wallet: Holds free assets that are available for use.

• LTO Wallet: Holds assets that are part of active contracts.

This separation is structural and ensures clarity, reducing confusion and preserving contractual integrity.

Why Two Wallets Exist

A single wallet can create ambiguity:

• Which assets are available for withdrawal?

• Which assets are locked in contracts?

• Which funds can pay installments?

The dual wallet system provides clarity:

• FUNDING Wallet = Available capital.

• LTO Wallet = Contract-bound assets.

This structure helps you navigate the platform confidently and ensures that contractual obligations are maintained.

FUNDING Wallet

Primary Function

The FUNDING Wallet holds assets with no contractual restrictions. These assets are available for use within platform policies.

What Lives in the FUNDING Wallet

• Deposits:
  All cryptocurrency or stablecoin deposits arrive in your FUNDING Wallet first.

• Free Assets:
  Any cryptocurrency not involved in active contracts remains here.

• Withdrawal Eligible:
  Assets in the FUNDING Wallet can be withdrawn to external addresses, subject to platform processing times and compliance procedures.

• Payment Source:
  Installment payments for LTO contracts draw from the FUNDING Wallet when needed, based on the platform’s payment priority structure.

Operations You Can Perform with the FUNDING Wallet

• Deposit:
  Transfer cryptocurrency from external wallets or exchanges to your FUNDING Wallet.

• Withdraw:
  Send assets from your FUNDING Wallet to external addresses.

• Convert:
  Exchange one cryptocurrency for another within your FUNDING Wallet (where supported).

• Create LTO Contract:
  Use assets in your FUNDING Wallet as down payments for new contracts.

• Transfer Internally:
  Move assets between your FUNDING and LTO Wallets when applicable.

Visual Indicator

When viewing your FUNDING Wallet, assets display with a “Free” status. This indicates that they are available for permitted operations.

LTO Wallet

Primary Function

The LTO Wallet holds assets that are part of active Lease-to-Own contracts. These assets are contract-bound during the agreement.

What Lives in the LTO Wallet

• Contracted Assets:
  When you create an LTO contract, the leased cryptocurrency moves to your LTO Wallet.

• Economic Participation:
  You receive economic participation in these assets. Market price movements are reflected in your position during the contract term.

• Locked Status:
  During active contracts, these assets cannot be withdrawn or transferred. This supports the payment-based structure of the agreement.

• Completion Status:
  After the final payment is processed, assets remain in the LTO Wallet but their status changes to “Free.”

Visual Indicator

• Assets in active contracts display a “Locked” status.

• After contract completion, the status changes to “Free” while the assets remain in the LTO Wallet.

Key Differences Between FUNDING and LTO Wallets

How the Dual Wallet System Works

Example: Creating an LTO Contract

1. Before Contract Creation:

   • FUNDING Wallet: $30,000 USDT (Free).

   • LTO Wallet: Empty.

2. Action:

   • Create a contract for 1 BTC with a 35% down payment ($23,800).

3. After Contract Creation:

   • FUNDING Wallet: $6,200 USDT (Free).

   • LTO Wallet: 1 BTC (Locked).

Explanation:
The down payment leaves the FUNDING Wallet, and the contracted BTC appears in the LTO Wallet with a Locked status.

Example: Contract Completion

1. Before Final Payment:

   • LTO Wallet: 1 BTC (Locked).

2. After Final Payment:

   • LTO Wallet: 1 BTC (Free).

Explanation:
The asset remains in the LTO Wallet, but its status changes from Locked to Free. Full control is activated according to platform policies.

Common Scenarios

Scenario 1: Need to Withdraw but Asset is Locked

Situation:
You need Bitcoin for an external payment, but your Bitcoin is locked in a contract with 6 months remaining.

Options:

• Wait for contract completion.

• Use available Free assets in the FUNDING Wallet.

• Review early settlement options if available under your contract terms.

Scenario 2: Using Free Assets to Start a New Contract

Situation:
You hold 2 ETH (Free) in your FUNDING Wallet and want to create a BTC contract.

Process:

1. Convert ETH to a supported stablecoin.

2. Use the stablecoin as a down payment.

3. BTC appears in the LTO Wallet (Locked).

Result:

• FUNDING Wallet balance decreases.

• LTO Wallet reflects the new Locked asset.

Scenario 3: Multiple Contracts Completing at Different Times

Each contract completes independently.

Outcome:

• The specific asset changes from Locked to Free upon completion.

• Other active contracts remain unaffected.

Key Takeaways

• The FUNDING Wallet holds Free assets that are available for deposits, withdrawals, and new contracts.

• The LTO Wallet holds Locked assets that are part of active contracts.

• Locked assets cannot be withdrawn or transferred until the contract is completed.

• The dual wallet system ensures clarity, preserves contractual integrity, and supports smooth platform navigation.

This guide ensures you understand the purpose and functionality of the dual wallet system on BitLease, helping you manage your assets with confidence.