How to Trade Privately

This guide walks you through the complete process of private trading on hx.finance, from initial setup to executing trades and withdrawing funds.

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Testnet Only: Private trading is currently available only on testnet. Visit testnet.hx.finance (opens in a new tab) to try out these features before they launch on mainnet.

Before starting, ensure you have completed the Proof of Innocence process.

Complete Trading Flow

Generate Proof of Innocence

Before you can use any privacy features, you must prove you're not on sanctions lists.

Navigate to Private Trading → Proof of Innocence
Click Generate Proof
Approve the transaction
Wait for confirmation

Make a Private Deposit

Once your innocence is proven, you can deposit tokens privately.

Go to Private Trading → Private Deposit
Select your token (WHYPE, UBTC, UETH, or USDE)
Enter the amount to deposit
The system will:
- Download your commitment as an encrypted file
- Store it in your browser (encrypted with your password)
Approve token spend (if needed)
Confirm the deposit transaction

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Commitment Storage: Your commitment is automatically saved:

Downloaded as an encrypted file to your device
Stored in your browser's encrypted storage
Hardware wallet backup available as a UI option

Keep your password safe - you'll need it to access your commitments.

Execute Private Swaps

With funds deposited, you can now trade privately.

Navigate to Private Trading → Private Swap
Select your input and output tokens
Enter the amount to swap
The system will show available routes
Click Generate Proof to create the swap proof
Confirm the private swap transaction

Withdraw Your Funds

When ready to exit the privacy pool:

Go to Private Trading → Private Withdraw
Select your commitment (loaded from browser/file/hardware)
Specify withdrawal amount and recipient address
Generate withdrawal proof
Execute the withdrawal

Detailed Instructions

Making Your First Private Deposit

1. Preparation

Ensure you have tokens to deposit
Have HYPE for gas fees
Use a secure environment (not public WiFi)

2. Generate Commitment

When you click "Deposit", the system will:

Generate a unique commitment for your deposit
Create a secret and nullifier pair
Automatically save them encrypted

Storage Options:

Automatic: Browser storage (encrypted) and file download
Hardware Wallet: Available as an option in the UI
Manual: You can also save the commitment yourself

3. Commitment Management

Browser Storage: Automatically encrypted with your password
Downloaded File: Keep the encrypted backup file safe
Hardware Option: Use the UI to backup to Ledger/Trezor
Recovery: Import from file or hardware wallet when needed

Executing Private Swaps

Single-Hop Swaps

Direct swaps between token pairs with liquidity pools:

Fastest execution
Lowest fees
Best for common pairs

Multi-Hop Swaps

Routed through multiple pools for better pricing:

Automatic routing
May have better rates
Slightly higher gas costs

Swap Settings

Slippage Tolerance: Set between 0.5% - 3%
Deadline: Transaction validity period
Min Output: Protection against price changes

Managing Multiple Commitments

You can have multiple active commitments:

Commitment Dashboard
- View all your commitments
- Check balances
- Track swap history
Nonce System
- Each commitment can perform multiple swaps
- Nonces prevent double-spending
- Sequential nonce enforcement

Advanced Features

Partial Withdrawals

You don't need to withdraw everything at once:

Withdraw any amount up to your balance
Remaining funds stay in privacy pool
Multiple withdrawals from same commitment

Cross-Token Privacy

Your privacy extends across tokens:

Deposit WHYPE, withdraw USDE
No on-chain link between deposit and withdrawal
Complete transaction graph privacy

Best Practices

Security

Commitment Management
- Use unique secrets for each deposit
- Never reuse nullifiers
- Store backups securely
Transaction Timing
- Avoid patterns in deposit/withdrawal times
- Use random amounts when possible
- Consider time delays between actions
Network Security
- Use VPN for additional privacy
- Avoid public networks
- Clear browser cache after sessions

Gas Optimization

Batch Operations: Plan multiple swaps together
Optimal Times: Trade during low network congestion
Token Approvals: Set reasonable allowances

Privacy Maximization

Amount Obfuscation
- Use non-round numbers
- Vary deposit amounts
- Split large amounts
Timing Strategies
- Random delays between transactions
- Avoid predictable patterns
- Use different times of day
Address Management
- Withdraw to fresh addresses
- Avoid linking to KYC addresses
- Use different addresses for different purposes

Common Scenarios

Scenario 1: Private DCA Strategy

1. Deposit USDE privately
2. Weekly swap USDE → WHYPE
3. Accumulate in privacy pool
4. Withdraw when target reached

Scenario 2: Large Trade Execution

1. Split amount into multiple deposits
2. Execute swaps over time
3. Withdraw to different addresses
4. Maintain transaction privacy

Scenario 3: Arbitrage Trading

1. Deposit capital privately
2. Execute rapid swaps
3. Capture price differences
4. Keep strategies hidden

Troubleshooting

"Insufficient Balance" Error

Verify commitment has funds
Check you're using correct nonce
Ensure proof matches current state

"Invalid Proof" Error

Regenerate proof with current data
Check Merkle root is up-to-date
Verify commitment details are correct

"Transaction Failed"

Increase gas limit
Check slippage settings
Verify token approvals

UI Navigation

Desktop Interface

Privacy Menu: Top navigation bar
Quick Actions: Dashboard widgets
History View: Transaction explorer
Settings: Privacy preferences

Mobile Interface

Bottom Tab: Privacy section
Swipe Actions: Quick deposit/withdraw
Commitment List: Scrollable view
QR Support: For commitment backup

You're now ready to trade privately on hx.finance! Remember to always prioritize security and follow best practices for maximum privacy.

Proof of Innocence Technical Details