Withdrawals & Cold Storage

[Anonymous]

Hi Alex,

If we set withdrawals to not need admin approval and have the majority of funds sent to cold storage what happens when the user requests/approves a withdrawal greater than the amount held in the hot wallet? Will the plugin notify them and an admin that funds need to be transferred from cold storage (and will the TX go ahead then once the hot wallet has been topped up) or will the withdrawal just fail due to lack of funds?

Thanks,

[alexg]

Hello,

If there are not enough funds, then the user withdrawal will fail and the user will receive an error message (that you can configure under “Wallets” -> “Notifications” -> “Notification settings for FAILED withdrawals”

You should probably hold more funds in the hot wallet than the largest balance on your site, because any user might decide to withdraw all of their funds at any time. The Cold Storage feature will tell you how much of each coin you should have online, so that you have a given percentage of the total user balances online.

If you have selected the option “Wallets” -> “Notifications” -> “Notification settings for ALL events” -> “Forward errors to admins” then you will know if a user has not been able to withdraw their funds.

with regards

[Anonymous]

Thanks for the reply Alex.

Having to hold a potentially significant amount in the hot wallet does defeat the object of having cold storage a little though. Would it be possible that instead of the withdrawal failing it instead goes to requiring admin approval which would then give the opportunity for the admin to transfer funds to the hot wallet before approving the TX?

[alexg]

Hello,

The proposal you suggest makes sense, however it would need a large number of changes to the code, some of which can introduce problems if not done carefully. I have not yet performed an initial analysis of how hard it would be, so I can’t comment on that yet. I will have to work on it first, to determine what needs to change and how long it will take. I am scheduling this change and I will contact you again here about this.

In any case, you shouldn’t need to keep a significant amount online. Only keep a small fraction of the total sum of user balances.

with regards

[alexg]

Hello,

The latest version 4.4.6 addresses this issue. Hopefully the behavior of the plugin is a little more helpful now in these situations. Please see the relevant release notes on the blog: https://www.dashed-slug.net/hot-wallet-low-balance/

with regards

[Author]

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