Deposit Lifecycle

The lifecycle of a deposit operation

1

SourceTxDiscovered

This is the initial state of an operation, which is created when a deposit is discovered in a block. A deposit is identified as follows:

• Bitcoin: A Bitcoin output - greater than the minimum 0.002 BTC - to a Unit deposit address.

• Ethereum: An ETH transfer from an EOA or contract - greater than the minimum 0.05 ETH - to a unit deposit address. Ethereum deposits uniquely correspond to a trace.

Once a sourceTx is discovered, the deposit operation goes through validation, which includes checks for sanctioned addresses.

2

WaitForSrcTxFinalization

A transaction is considered unconfirmed until it has been included in a block on the source blockchain, at which point it has one confirmation. Each additional block is another confirmation. Confirmation requirements per source-chain are defined below

• Bitcoin: 2 confirmations

• Ethereum: 14 confirmations

3

BuildingDstTx

The guardians are constructing the Hyperliquid transaction payload to fulfill the deposit.

4

AdditionalChecks

Additional verification steps before Guardians sign the Hyperliquid transaction.

5

SignTx

The guardians are performing the MPC signature event for the Hyperliquid transaction.

6

BroadcastTx

The guardian network is submitting the destination transaction to the Hyperliquid network.

7

WaitForDstTxFinalization

Unit requires 10 confirmations for a Hyperliquid transaction to be considered final.

8

Done

The sweep of the source transaction has been performed and is finalized on the source network. The operation's state is officially "done" - this state is terminal.