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Why You Should Avoid Using Smart Wallets for Crypto Refunds

In cryptocurrency transactions, different blockchain layers can affect how funds are sent and received. Understanding these layers helps you make safer choices, especially during the refund process.


Understanding Blockchain Layers

First Layer Networks (Mainnet Blockchains)

These are the core networks where transactions occur directly on the blockchain. They are widely supported, fast, and secure.

Examples include:

  • Bitcoin

  • Ethereum

Second Layer Networks (Smart Wallets)

These are third-party networks or platforms built on top of the main blockchain. They offer added features like faster or cheaper transactions but come with certain risks:

  • Refunds are not always instant

  • Funds can be delayed or lost if the network doesn’t support certain transaction types

Examples include:

  • Coinbase

  • Polygon

  • Arbitrum

  • Optimism

  • Zksync

  • Scroll Kevin

  • Gnosis


Recommended Refund Process

To minimize issues, follow these steps:

  1. Submit a refund request from the Order Details page.

  2. You’ll receive an email with a link to a refund submission page.

  3. Enter your regular wallet address (non-smart contract wallet).

    Note: Using a regular wallet increases the chances of successful refund delivery.
    If you choose a smart wallet and the refund fails, you may be asked to provide a new address.

  4. Wait for the refund to be processed.


Why Use a Regular Wallet?

Using a regular wallet helps you avoid:

  • Incompatible refund paths

  • Delayed transactions

  • Risk of lost funds due to unsupported second layer protocols

Choosing the right wallet type ensures a smoother and more secure refund process.

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