Reserved Funds - notatestuser/chainline-contracts-kt GitHub Wiki

Reserved Funds are a portion of a wallet's balance that cannot be spent for a certain period of time unless sent to their intended recipient.

Reserved Funds have the following attributes:

• An expiry time - this is when the funds will unlock themselves after a period of time elapses.

• Amount - the amount of GAS held.

• Recipient - the designated recipient of the reserved funds. The funds can be only sent to this address prior to their expiry time.

The Smart Wallet invokes the Hub to check its reserved funds records when a withdrawal is attempted.

Security benefits

Reserved Funds are not held in any smart contract or controlled by any key other than the user's own private key. This means that there is no threat of loss of funds due to attacks on the hub contract. This is very beneficial in light of recent losses of cryptocurrency due to exploits on contracts such as the DAO, Parity multi-sig contracts, etc.