Fungibility Provider

The primary role of FP (Fungibility Provider) is to facilitate BTC redemptions that cannot be directly handled by Operators.

Here's why:

• Operators can only process withdrawals within specific amount ranges.

• When a user's redemption request falls outside these limits, FPs advance the BTC payment to the user immediately.

• Later, when FPs accumulate enough small withdrawals to form a processable batch, they reclaim the BTC through Operators.

After FPs advance BTC to users, they must redeem the BTC themselves. In this scenario, FPs assume the same role as bridge users, following identical trust assumptions during redemption. (Refer to the User section for details.)

Note: Users are required to pay an additional service fee to FPs for this convenience.