How Do Exchanges Typically Manage the Risk of RBF-enabled Deposits? ⎊ Path

How Do Exchanges Typically Manage the Risk of RBF-enabled Deposits?

Exchanges typically manage the risk of RBF-enabled deposits by requiring a minimum number of confirmations before crediting the user's account. They will often wait for 3 to 6 confirmations, making it virtually impossible for the depositor to successfully double-spend the funds via RBF.

Additionally, some exchanges will monitor the mempool for RBF flags on incoming transactions and may reject or flag any transaction that is signaled as replaceable until it is confirmed.

What Is a “Flash Loan” and How Is It Enabled by Smart Contracts?

How Do Centralized Exchanges Prevent Double-Spending before Blockchain Confirmation?

How Can Exchanges Protect Themselves from Double-Spending Caused by 51% Attacks?

Why Does the Number of Required Confirmations Increase with Transaction Value?

How Do Centralized Exchanges Typically Protect Themselves from Double-Spend Attacks?

How Does Increasing the Number of Block Confirmations Reduce the Risk of a Successful Reorg Attack?

How Many Confirmations Are Typically Considered Safe for High-Value Bitcoin Transactions?

How Many Confirmations Are Typically Recommended for a Large-Value Transaction and Why?

Glossar

RBF Flags

Mechanism ⎊ RBF Flags, within cryptocurrency derivatives, represent a suite of on-chain signals indicating Replace-By-Fee (RBF) transaction behavior, crucial for assessing mempool dynamics and potential transaction manipulation.