Your account and smart wallet

The owner wallet signs, the XO smart wallet trades — and why the difference matters.

XO uses two wallets, and the difference matters the first time you fund your account.

Wallet	Role
Owner wallet (external or embedded)	Proves you control the account. It signs.
XO smart wallet	Holds your trading USDC, grants approvals, signs orders through ERC-1271, and holds your outcome positions.

Everything you trade with lives in the smart wallet.

Depositing into your external owner wallet does not make the XO smart wallet tradable. Funds have to reach the smart wallet before you can place an order. Use the in-app funding flow — see Deposit funds.

Enabling trading

Before your first order-book trade, XO asks you to Enable Trading. This one-time step grants the smart wallet’s USDC allowance and Conditional Token operator approval.

It is an enabling transaction, not your trade. Your order is submitted separately, after it confirms.

Available balance vs wallet balance

Your available balance can be lower than your wallet balance. Resting orders reserve funds:

• an open buy order reserves cash
• an open sell order reserves shares

Reserved amounts cannot be used for a second order. To free them, cancel the resting order. See Order book basics.

Keeping your account safe

• XO support will never ask for your seed phrase or private key. Nobody legitimate ever will.
• Check the route you are on before signing anything.
• When something looks stuck, confirm the current state before retrying — duplicate submissions are the most common way users create a second problem on top of the first.

Building against XO? The same identity model, from the signing side, is documented in Smart accounts.