Why do I need to 'deposit' tokens?

The DeversiFi trading platform has been designed to optimise for speed, privacy, certainty of execution and cost efficiency. 


Once a trade is matched on DeversiFi, it is executed instantly, your balance is updated and your new funds are available to trade right away. However, DeversiFi never has custody of your funds or those of the other trades whose orders are on the orderbook. So how can one be certain that all parties will honour their orders and the correct settlements will be made?

All funds corresponding to live orders are deposited in the exchange smart contract - this ensures that all orders are available to take at any time with absolute certainty that they can be settled. This is why each user needs to deposit the funds they wish to trade into the smart contract before they can do so. 

To understand more details about how balances are stored and updated after deposits refer to the articles on StarkWare.

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