Once your wallet is connected and you have made it into the portal, you will be able to view your balances in the ‘TOKEN BALANCES’ drop-down section, visible below...
As you can see, some of the tokens above are ‘locked’. This is because you need to ‘LOCK’ the exact token and token amount you wish to trade with before you are able to trade inside the portal.
Why do I need to Lock my tokens?
Locking tokens means Ethfinex can be 100% certain that orders placed from within the portal will be settled successfully. In other words, it protects against any user with an open order suddenly making their tokens unavailable.
The major benefit behind this is that it allows us to securely mix and match centralised (ethfinex.com) and decentralised (trustless.ethfinex.com) orders together. So rather than being limited to the available trades within the portal, you can now start benefiting from additional access to the huge liquidity of our centralised order-book, rapid trade execution, as well as un-compromised control over your own assets with on-chain settlement.
What happens when tokens are Locked?
Locking your tokens does NOT send them to any privately owned Ethfinex wallet but instead to a smart-contract (visible here). This smart-contract is programmed so that only you have control over your tokens.
- You dictate the lock time-period
- You are always able to unlock your tokens (if you have 0 open orders)
- Your tokens are automatically made available once your dictated time-period has passed (whether you have an open order or not)
As the functions of the smart-contract are executed in a pre-programmed, transparent and robotic fashion, there is no centralised administration making any intervening decisions. The end result of this approach is a faster, smoother and more reliable experience within the decentralised portal, without sacrificing security or control.
If you want to dive deeper and explore the technical mechanics of our locking process, smart-contract or matching logic please click here.