# How LeadFi Works

**At a glance**

1. You initiate a mint in the app. Your Bitcoin wallet sends BTC to the LeadFi reserve address. The app includes a memo (OP\_RETURN) linking your EVM address to the deposit.
2. LeadFi verifies the BTC deposit on-chain and mints the same amount of **leadBTC** to your EVM address.
3. You can bridge leadBTC between chains (powered by LayerZero, via OFT).
4. When you withdraw, leadBTC is burned on EVM and an equivalent amount of BTC is released to your Bitcoin address.

**Key principles**

* **1:1 backing**: leadBTC is backed by reserves. See *Reserves & Transparency*.
* **Non-custodial to you, institutional custody for reserves**: reserves are secured with **Cobo MPC**.
* **No exchange transfers**: always use your self-custody wallet (don’t send directly from exchanges).


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