> ## Documentation Index
> Fetch the complete documentation index at: https://docs.everstrike.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Off-Chain State Channels: Your Balance and Position Record

> Learn how off-chain state channels track balances and positions between you and Everstrike, enabling trustless fund recovery without operator cooperation.

Every Everstrike account maintains a perpetual state channel with the operator. The state channel tracks your balances and positions off-chain, creating a continuously updated bilateral record of the agreed state of your account. Either you or the operator can revoke the channel at any time. If the operator refuses to cooperate with a withdrawal, your latest state receipt is the cryptographic proof you need to recover your funds without their involvement.

## What is a State Receipt?

A state receipt is a signed snapshot of your current state channel. It is a rolling agreement between you and the operator that records exactly what both parties have agreed to.

Each receipt contains:

* **Nonce** — a sequential counter that identifies where this receipt falls in the chain of receipts. Higher nonce means more recent.
* **User signature** — your cryptographic signature confirming the state.
* **Operator signature** — the operator's cryptographic signature confirming the same state.
* **User balance** — your current evUSD balance as of this receipt.
* **User positions** — all open positions as of this receipt.

Because both parties must sign every receipt, neither can unilaterally alter the record.

## When You Receive a New Receipt

You receive a new state receipt after any operation that changes your balances or positions. This includes:

* Submitting or cancelling an order
* Trades executing against your orders
* Funding transactions (for perpetual futures and options)
* Deposits to your account
* Withdrawals from your account

Each new receipt supersedes the previous one. Keep your most recent receipt — it is the only one valid for Trustless Withdrawal.

## Using Your State Receipt

Always use the receipt with the **highest nonce**. This is your most recent receipt and the only one that reflects the current agreed state of your account.

If you attempt a Trustless Withdrawal with an older receipt, the operator can invalidate the request by submitting a newer one during the 24-hour challenge window. An invalidated request forfeits the Dishonesty Fee.

<Warning>
  Never submit a Trustless Withdrawal with any receipt other than your latest. Using an outdated receipt when you have a valid newer one will result in the operator challenging and invalidating your request, and you will lose the Dishonesty Fee.
</Warning>

## If You Lose a Receipt

State receipts are stored in three places: on your device, with the operator, and in `Everstrike.sol` on-chain.

If you lose a receipt from your device:

1. Request your latest receipt from the operator.
2. If the operator refuses to provide it, retrieve it directly from `Everstrike.sol` — the contract holds the last committed receipt.

If the operator refuses and you cannot recover from on-chain state, stop trading immediately and contact Everstrike support before taking further action.

For the full emergency withdrawal procedure including fees and pre-submission checks, see [Trustless Withdrawal](/technical-architecture/trustless-withdrawal).