> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usexfg.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Earning Interest with Fuego Decentralized Deposits

> Learn how Fuego's on-chain time deposits work: the 800 XFG minimum, 3-month lock term, and how the protocol pays interest with no bank or custodian involved.

Fuego includes a protocol-level deposit system that lets you lock XFG for a fixed term and earn interest — with no bank, no custodian, and no counterparty risk. The interest is calculated and enforced by the blockchain itself. When you create a deposit, your funds are locked inside a special transaction output. When the term expires, you submit a withdrawal transaction and the principal plus accrued interest is returned to your wallet.

## Deposit parameters

The deposit system has fixed parameters enforced by the network:

| Parameter               | Value                                            |
| ----------------------- | ------------------------------------------------ |
| Minimum deposit amount  | **800 XFG**                                      |
| Lock term               | **16,440 blocks** (\~3 months at 180 blocks/day) |
| Banking transaction fee | **0.008 XFG**                                    |

There is currently one standard term: 16,440 blocks. You cannot choose a shorter or longer duration.

## Locked vs unlocked balance

Your wallet balance shows two deposit sub-balances:

* **Locked deposit balance** — XFG locked in an active deposit that has not yet matured.
* **Unlocked deposit balance** — XFG from deposits that have reached their unlock height and are ready to withdraw.

Neither balance is available for ordinary spending until you explicitly withdraw the deposit.

## How interest accrues

Interest is computed at the protocol level based on the deposit amount, the lock term in blocks, and the block height at which the deposit was created. No third party holds your funds or pays you interest from a reserve — the protocol mints the interest as part of the deposit withdrawal transaction, similar to how block rewards are minted. The exact rate is determined by the network consensus rules active at deposit creation time.

## Creating and withdrawing a deposit

<Steps>
  <Step title="Check your available balance">
    Open your wallet and confirm you have at least **800 XFG** in your spendable balance, plus a small amount to cover the 0.008 XFG fee.
  </Step>

  <Step title="Create the deposit">
    In the wallet TUI or GUI, navigate to the Deposits section and submit a **Create Deposit** request. Specify the amount (minimum 800 XFG). The wallet broadcasts a transaction that locks your funds and records the unlock height on-chain. You will receive a transaction hash confirming the deposit was created.
  </Step>

  <Step title="Wait for the unlock height">
    Your deposit is locked for **16,440 blocks** — roughly 3 months. You can monitor the current block height against your deposit's `unlockHeight` using a block explorer or the wallet status display. The funds cannot be spent during this period.
  </Step>

  <Step title="Withdraw your deposit">
    Once the unlock height is reached, submit a **Withdraw Deposit** request using your deposit ID. The wallet broadcasts a withdrawal transaction, and the principal plus interest is credited to your unlocked deposit balance, then available for spending after the standard 10-block spendable age.
  </Step>
</Steps>

<Warning>
  Deposits are locked for approximately 3 months (16,440 blocks). There is no early exit. Do not deposit funds you may need access to before the term ends.
</Warning>

## Burn2Mint

The wallet TUI also exposes a **Burn2Mint** feature, which is an alternative mechanism for converting holdings within the Fuego ecosystem. Refer to the TUI documentation for details on how to use it.