Understanding Your Wallet Structure: FUNDING vs LTO

Last updated on July 11, 2026

Understanding Your Wallet Structure: Funding Wallet vs LTO Wallet

BitLease uses separate, isolated wallets for different purposes. Understanding the distinction between them prevents confusion and helps you manage your funds correctly.

The two primary wallets are the Funding Wallet and the LTO Wallet. They are completely separate by design. Money does not move between them automatically.

The Funding Wallet

The Funding Wallet is your entry point. Every deposit you make from an external wallet or exchange arrives here first.

Think of the Funding Wallet like a current account — liquid, flexible, and general-purpose. It is always accessible and is never locked by a contract.

What you can do from the Funding Wallet:

  • Deposit digital assets on-chain (USDT and other supported assets)

  • Withdraw assets to external wallets

  • Convert one asset to another

  • Transfer funds to your LTO Wallet to start or top up a contract

  • Receive Free Assets transferred from your LTO Wallet

The Funding Wallet is fully isolated from the LTO Wallet. Assets in the Funding Wallet are never automatically used for installments. You must transfer them manually.

The LTO Wallet

The LTO Wallet is the wallet where your contract activity happens. It is activated automatically when you open your first LTO contract.

The LTO Wallet contains two distinct states of assets side by side:

  • Locked Assets — assets tied to an active contract. These are under MPC custody and cannot be moved until the contract closes.

  • Free Assets — assets that are fully yours with no contract restrictions. These include staking rewards, settlement surplus, and released assets after full ownership transfer.

From the LTO Wallet, you can:

  • View your Locked and Free asset balances separately

  • Use Free Assets to pay installments

  • Transfer Free Assets to the Funding Wallet

  • Start a new LTO contract (LTO Builder)

  • Convert assets (where available)

  • Pay installments directly

How funds move between wallets

All fund movement between wallets is manual and initiated by you. Nothing moves automatically. Here is the standard flow:

  1. Deposit — Send USDT (or other supported assets) from an external wallet or exchange to your Funding Wallet address.

  2. Transfer — Move funds from your Funding Wallet to your LTO Wallet using the Transfer function. This step is required before starting a contract.

  3. Contract activation — Once funds are in your LTO Wallet, you can start a contract. The down payment locks immediately. The asset appears in Locked state.

  4. Installments — Pay installments from your LTO Wallet. If your LTO Wallet balance is insufficient, transfer more funds from your Funding Wallet first.

  5. Withdrawal — Move Free Assets from your LTO Wallet to your Funding Wallet, then withdraw from the Funding Wallet to your external wallet.

Other wallet types (Coming soon)

As you use more BitLease products, additional wallet types appear in the Wallets tab:

  • LTB Wallet — for Lease to Bundle contracts. Functions similarly to the LTO Wallet but holds your bundle of assets.

  • LTE Wallet — for Lease to Elect contracts. Holds your pool of reserved assets until you make your election.

  • LTU Wallet — for Lease to Use. Holds your USDT balance and tracks your open leases, realized PnL, and unrealized PnL.

Each product wallet is isolated from the others. No assets move between product wallets automatically. The Funding Wallet remains the single point of entry and exit for all wallets.

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