Fund collection, also known as fund cleaning, refers to the summary transfer (essentially a transfer transaction) of funds in all sub-address wallets in the account to the designated account. In short, it is equivalent to a customer who owns multiple stores. It can simply and quickly summarize the income of all stores. This function is conducive to fund management and operation, and also improves work efficiency. Especially for centralized platforms, such as wallets, exchanges, and asset management platforms, it has become an essential basic function. In this way, the centralized platform can ensure that there are sufficient funds for payment, and the internal transactions of the platform do not require real-time settlement on the chain.
For example, you have obtained 100 addresses from Cobo Custody and assigned 100 users to you as deposit addresses. If each user deposits 1 ETH, Cobo will record a general ledger of 100 ETH for your Custody wallet, you no longer need to Keep an eye on the on-chain balance of these addresses, just use the total balance in your Custody wallet. (Actually, Cobo completes the collection of funds for you, and you do not need to manage the details of collection of funds at all).
1. Why is the balance on the address chain different from the balance in the Cobo Custody wallet?
It is precisely because of the existence of fund collection that your deposit address should only be used as deposit, and your account should no longer depend on the on-chain balance of this address. Because Cobo may have completed the collection of funds for this address (ie, transferred the assets on this address to the collection address).
Please refer to your Cobo Custody wallet balance for your total balance (if you have any doubts about the balance, you can export all transaction records for reconciliation).
2. Do all currencies have funds collected?
All currencies can do fund collection, but for the currency of the UTXO model (supporting one transaction with multiple inputs), such as BTC, the collection is not necessary. For the currency of the account model, such as ETH and all ERC20 tokens, aggregation is necessary.
3. Under what circumstances will it be collected? Will it be collected every time I top up?
Due to the cost of fund collection (such as the collection of ETH, it may actually be the miner fee consumed by 1-2 ETH transfers), so Cobo has some default collection logic.
The collection is triggered when the value of the Token to be collected > Cobo coefficient * the value of the ETH miner fee required for this collection. (There may be two ETH miner fees required here: a. If the user’s Token address has ETH, only one miner’s fee is required to collect the Token; b. If the user’s Token address does not have ETH, Cobo needs to transfer one first. If you send ETH to this address, and then transfer the Token from this address, you will need at least two ETH miner fees: transfer ETH + collect Token)
This is also a cost consideration why many exchanges limit the "minimum deposit amount".
4. Does Cobo collect collection fees?
If the monthly collection fee is less than 500RMB, Cobo will not charge additional collection fee for the time being. If the limit is exceeded, Cobo has the right to charge you the collection fee. If you have special support requirements for currencies, especially ERC20 Tokens, the collection fee needs to be paid by you (please ask your sales consultant).