Receive Deposits

This guide outlines the process for accepting deposits into a unique address created for the transaction.

It provides a detailed walkthrough of the deposit process, including how it interacts with the respective blockchain, the prerequisites of creating an asset pool and a webhook destination for payment event updates. Once the pre-steps are done, it covers which endpoint is used to create the address, the data that needs to be sent to the endpoint, and how the funds are consolidated into a master address that belongs to the asset pool after the deposit is received. Additionally, it covers the webhooks sent out during the withdrawal process.

To integrate address deposits, you must complete the following steps:

1. Set up the webhooks destination to send payment update webhooks and any other related events.
2. Create the asset pool that will house the created address and keep track of all funds sent to any related addresses created in future.
3. Create a new crypto Address for the specific currency wanted. The final address is sent to the earlier webhook destination.
4. Ingest and deserialise the resulting webhooks to keep track of:
   • Created address
   • Status of the deposits sent in
   • Total amount of funds in your pool
   • Movement of funds within your asset pool

To summarise, this deposit process involves the following:

1. Sending funds to a wallet address created and linked to your asset pool.
2. Once deposits are sent to the address, the Layer1 system will pick up the transaction, and the status of the deposit will be updated through webhooks.
3. Once funds have been recorded within the asset pool, a consolidation phase will occur, transferring the funds into a master wallet so that they can be easily sent out as required.

Deposit flow

The deposits pass through the following lifecycle on the Layer1 platform:

1. Once a payment is first detected on the blockchain, a transaction with type DEPOSIT and status DETECTED is created.
2. The respective blockchain will process the transaction, and it checks for errors
   • If errors are found (YES), then the DEPOSIT is assigned as FAILED, as this action is irreversible.
   • If no errors are found (NO), the DEPOSIT status is updated to UNCONFIRMED and is monitored until the desired confirmation threshold is reached. For more information on confirmation thresholds, see FAQs
3. Once the required number of confirmations is reached the DEPOSIT is moved to CONFIRMED state.
4. Another check is made to see if the transaction needs to be screened against any fraudulent activity.
   • If NO checks are required, the state changes to SUCCESS and the funds become available within the asset pool.
   • If the transaction must be screened (YES), the state is updated to SCREENING_REQUESTED.
5. An automatic check is made to see if the funds can be released.
   • If the funds can be released (YES), the state changes to SUCCESS and the funds are available within the asset pool.
   • Otherwise (NO), the DEPOSIT it held for manual review and set to state HELD.
6. The deposit is then checked for manual approval.
   • If the DEPOSIT is checked and found to be eligible for approval, the screening can be APPROVED. The DEPOSIT state changes to SUCCESS. The funds become available within the asset pool.
   • If the DEPOSIT is eligible to be returned, from the HELD status you can trigger RETURN. This will update the DEPOSIT to REJECTED and a new RETURN WITHDRAWAL is created.

Deposit Statuses

A Deposit will go through a series of statuses in the deposit workflow:

Status	Description
Detected	The deposit has been detected and distributed on the blockchain, but does not yet have any confirmations
Failed	The deposit failed due to an on-chain error has occurred during execution, could be multiple underlying reasons
Unconfirmed	The deposit has had one or more blockchain confirmations, but has not yet reached the required confirmation limit
Confirmed	The deposit has reached the required confirmation limit and is not fully confirmed on the blockchain
Screening_Requested	The deposit has been flagged by the compliance provider and needs to be screened
Held	The deposit has been held for further investigation after screening
Success	The deposit has been processed and the funds are available in the asset pool
Rejected	The deposit was not found eligible for approval and is rejected