# Hybrid Approach

SuperVol employs a hybrid approach with **on-chain settlement** and **off-chain orderbook** management.

Initially, SuperVol aimed to implement the entire options trading process fully on-chain. However, this approach encountered several technical challenges:

* Users needed to sign each order individually from their wallets, creating inconvenience.
* A few seconds of latency existed between placing and executing orders, which is critical for ultra-short-term options.
* Each order, regardless of execution, incurred gas fees, making the process cost-inefficient.

To optimize user experience in terms of trade execution, orderbook management, and costs, SuperVol adopted the hybrid model of on-chain settlement and off-chain orderbook management, similar to methods used by other perpetual DEXs like dYdX.

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In this hybrid system, SuperVol introduces the concepts of **Deposit** and **Withdraw**.

Upon trading, it is required that users lock USDC (in the amount desired to trade) to an on-chain contract. This amount acts as a margin. **Withdrawal is always available**, whenever a user decides to stop trading on SuperVol.

Importantly, SuperVol does NOT take ownership of the stablecoins during these processes. 

* With SuperVol, your funds always stay on-chain and you remain in full control of your stablecoins at all times. 
* There are no central intermediaries that hold your private keys. 
* Thus, both Deposit and Withdraw are on-chain actions, requiring wallet signatures.

When a user deposits USDC.e to SuperVol, the amount is credited to **ClearingHouse** contract under a unique tag. This amount is accessible only to the deposit user.