Non-custodial architecture

“Non-custodial” is used loosely across the industry, often to mean “we give the funds back quickly”. On Kotova X it means something narrower and checkable: there is no stage of a swap at which Kotova can move your assets, because Kotova never holds them.

Where your funds actually go

When you confirm an order, the executing provider issues a deposit address and Kotova displays it to you. You send your funds to that address. The provider performs the swap and sends the result to the receiving address you gave.

Kotova’s role is to have asked for the quote, ranked it, and passed your order details to the provider. It is not a party to either transfer.

The deposit address belongs to the executing provider

This is the single most important fact on this page. The address on your order page is generated by the provider that will execute your swap — not by Kotova.

It follows that:

• Kotova cannot redirect a deposit once sent.
• Kotova cannot freeze, hold, or release your funds.
• If you send to the wrong address, Kotova has no ability to recover it.
• A fresh deposit address is issued for every swap. Do not reuse an old one.

What Kotova stores instead of funds

Kotova stores the record of the order — the assets involved, the amounts, the timestamps, the addresses, and the status reported by the provider. That is what makes your order page work.

It does not store private keys, because it has none. There is no wallet in the system to hold them.

What is stored, how it is protected, and how long it is kept is covered in Privacy and data retention.

What non-custodial does not protect you from

Non-custodial architecture removes Kotova as a point of failure. It does not remove every risk, and it would be dishonest to imply otherwise:

• Counterparty risk during the swap. Your funds are with the executing provider from the moment your deposit confirms until they send the output. A centralised provider can hold or freeze them in that window. See Counterparty and freeze risk.
• Irreversibility. Blockchain transfers cannot be recalled. A wrong address, a wrong network, or a missing memo can mean permanent loss.
• Market movement. On a variable rate the amount you receive is set when the swap executes, not when you saw the quote.
• Your own key management. Kotova has no access to your wallet and cannot help recover it.