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OpenXSwitch secures outbound transactions by enforcing Watchlist Policies at the Account level during withdrawal and settlement operations. Watchlists enforce access parameters across all wallets under a given Account, evaluating transfers directly prior to transaction submission and rejecting restricted attempts before execution.

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How Watchlists Work

When watchlist policies are enabled on an Account, all external withdrawals initiated by any wallet under that Account are evaluated against the configured watchlist type:
  • Allowlist: Only destination addresses explicitly included in the allowlist are permitted to receive funds. Any withdrawal attempt to an address outside the allowlist is rejected by default.
  • Blocklist: All destination addresses are permitted by default, except addresses explicitly added to the blocklist. Any withdrawal attempt to a blocklisted address is automatically blocked and rejected.

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Watchlist Types

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Supported Operations

Account-level watchlist policies are evaluated automatically before transaction execution during:
  • External Withdrawals: Outbound transfers from underlying wallets to external blockchain addresses.
  • Settlement Operations: Treasury routing and external settlement transfers.
Operational Note: Address validation occurs prior to on-chain submission at the Account layer. Restricted transactions are rejected instantly before hitting the network, saving gas costs and maintaining tight security compliance across all associated wallets.