Question 1

What is an atomic swap?

Accepted Answer

An atomic swap is a peer-to-peer exchange of cryptocurrencies between different blockchains without the need for a trusted third party. The swap is 'atomic' because it either happens completely or not at all - there's no possibility of one party receiving assets while the other doesn't. This is achieved through smart contracts that cryptographically guarantee fair exchange.

Question 2

How does HTLC technology work?

Accepted Answer

Hash Time-Locked Contracts (HTLCs) use two key mechanisms: hashlocks and timelocks. The hashlock requires a cryptographic proof (secret) to unlock funds, while the timelock ensures funds can be reclaimed if the swap doesn't complete within a specified time. When both parties lock their assets in HTLCs with matching secrets, revealing the secret to claim one asset automatically reveals it for the other, ensuring simultaneous exchange.

Question 3

Is this suitable for large institutional trades?

Accepted Answer

Absolutely. ClearBox is specifically designed for institutional-scale transactions. Our infrastructure is built to handle high-value transactions with enterprise-grade security, compliance integrations, and dedicated support for institutional clients.

Question 4

How does compliance integration work?

Accepted Answer

To use the ClearBox platform, comprehensive KYC/KYB and KYT are required via our partners iComply and Chainalysis.

Question 5

What happens if one party doesn't complete the trade?

Accepted Answer

If one party fails to complete their part of the trade within the timelock period, the smart contract/HTLC automatically refunds the locked assets to their original owners. There's no possibility of losing funds due to counterparty failure - the cryptographic guarantees ensure you either complete the full swap or get your assets back.

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