> For the complete documentation index, see [llms.txt](https://references.everstrike.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://references.everstrike.io/technical-architecture/on-chain-settlement-custody.md).

# On-Chain Settlement/Custody

User funds remain on-chain at all times, within the Everstrike smart contracts. Funds within the contracts are divided into four categories:

**Free Funds**\
Free funds can be used for trading and redemptions.

**Locked Funds**\
Locked funds are used as margin for open positions and orders.

**Staked Funds**\
Staked funds can be used to mint Everstrike USD (the internal stablecoin of Everstrike).

**Deposited Funds**\
Deposited funds cannot be used for minting, but may be used for withdrawals and staking.

The user pays a gas fee for the following operations:

* Deposit
* Stake
* Withdraw

Everstrike covers the gas fee for:

* Mint
* Redeem (Unstake)