> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xo.market/llms.txt
> Use this file to discover all available pages before exploring further.

# 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.

<Warning>
  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](/product/accounts/deposit).
</Warning>

## 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](/product/trading/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.

<Note>
  Building against XO? The same identity model, from the signing side, is documented in [Smart accounts](/guides/smart-accounts).
</Note>