🥷 PRIVATE MODE

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About Private Transaction

In FogSwap's Private Mode, the system connects to liquidity from all CEXs, DEXs, and private chains, using multi-hop routing to obfuscate the transaction path. It also minimizes the chances of triggering AML checks from centralized exchanges.

In this mode, only the sender and receiver have knowledge of the transaction details. External parties cannot access specific information or trace the transaction.

The basic version of Private Mode is implemented using a two-hop swap across two different exchanges.

Simple

1. CEX 1 (Inbound)

   1. Receives your deposit and performs AML screening

   2. Converts your token into a randomly selected, highly liquid token on a random Layer 1 chain (referred to as the "intermediate token")

   3. Sends the intermediate token to CEX 2

2. CEX 2 (Outbound)

   1. Receives the intermediate token from CEX 1

   2. Converts it into your requested token

   3. Sends the final token to your destination address

Privacy Options

FogSwap offers two privacy modes beyond standard swaps:

Private Mode

• Two-hop routing through different exchanges
• Random intermediate token selection
• Processing time: 5-15 minutes
• Enhanced privacy without XMR
• Moderate fees

Private Mode with XMR Routing

• Includes Monero (XMR) as an intermediate step
• Ring signatures for maximum privacy
• Processing time: 10-40 minutes
• Highest level of transaction privacy
• Enable by toggling XMR Route option in settings
• Higher fees due to additional routing complexity

☁️☁️☁️	Standard	Private	Private with XMR
Liquidity	DEX CEX	Non-custodial CEX DEX	Non-custodial CEX DEX Private Chains (XMR)
XMR Routing	❌	❌	✅
Speed	0~3 mins	5~15 mins	10~40 mins
Fee	💰	💰💰	💰💰💰
Privacy Level	Basic 🌕	Enhanced 🌑🌑	Maximum 🌑🌑🌑

❓Why is this method effective?

Route Isolation

CEX1 handles the user's deposited tokens, converts them into an intermediate token, and sends it to CEX2. CEX2 is only responsible for sending the final token. It receives the intermediate token from CEX1, converts it into the target token, and sends it to the user. The two CEXs have no direct connection and operate independently, each with only partial information. This separation effectively isolates the transaction path.

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Random Address

Each hop in the transaction uses a newly generated, one-time address. The sending CEX only sees a newly created, unknown address. Similarly, the receiving CEX sees a one-time deposit address created by an unknown user. Neither side knows the other party is an exchange.

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Random Middle Layer

A highly liquid token from a randomly selected Layer 1 blockchain is used as a privacy intermediary to break the link between the sender's and receiver's tokens. The random Layer 1 is chosen from major high-performance, high-liquidity blockchains such as ETH, BASE, SOL, SUI, BSC, TRX, etc. From that Layer 1, a high-liquidity token is randomly selected as the intermediate token.

By introducing a random Layer 1, the cost of tracing increases significantly, making it very difficult for trackers to identify the transaction across numerous chains and diverse tokens. Using high-liquidity tokens as intermediaries also minimizes slippage and avoids repetitive token patterns. This not only reduces swap costs but also further enhances anonymity.