> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/how-it-works/bridgeless-stateful-transfers/covenant-system-shared-btc-pool.md).

# Covenant system shared BTC pool

The system shared BTC pool is a shared, non-custodial secure pool in the Covenant system where users can deposit their real BTC to get pooled channeled BTC. 

It's designed for users that require lower fees and fast liquidity without needing exact self-custody of their specific BTC coins - Covenant system pool fits for traders who prioritize low fees over getting the exact same BTC back.

### System shared BTC pool functionality

Here's how it works:

* How BTC gets in: Bob deposits BTC into the pool's address. Covenant system mints pooled channeled BTC to Bob with 1:1 match. Bob's c-BTC represents his amount of BTC in the shared pool.
* Linked portions: Each pooled channeled BTC is channeled to the pool. The pool's total BTC always equals the total minted pooled channeled BTC. No extra BTC is created or added without a deposit.
* How BTC gets out: To withdraw, Bob has to burn their pooled channeled BTC. The system sends Bob an equal amount of BTC from the pool - random BTC from the vault. This keeps things efficient and fee-low.
* Security and programmable operations: No one - not even the Covenant system - has direct assess or keys to shared pools. Covenant is a programmable distributed system run deterministically by smart contracts. It's like a multi-owned treasury vault: every CoveBTC holder has a "claim ticket" to withdraw their share, but the vault itself is isolated, locked and trustless. Only deposits add BTC, only withdrawals release it - everything is programmable, verifiable on-chain, no middleman.
* Why use it? Cheaper than self-custody deposits due no extra maintenance fees. Great for sell-buy DeFi activities where getting the exact same BTC back is not required. 
* Risks and benefits: 1:1 transparent backing means the assets are safe from under-collateralization. Since it's algorithmic, distributed and smart-contract managed, it's transparent and no middleman can steal, manipulate or freeze funds. The risks are the user is responsible for their operations, private keys security and should remember about onchain immutability. The system validates the transactions, and don't have access to the user keys or assets.

Such shared pool structure makes BTC more liquid for trading while keeping the system secure, decentralized and user-owned.