diff --git a/content/concepts/payment-system-basics/accounts/depositauth.md b/content/concepts/payment-system-basics/accounts/depositauth.md index c1aa45c34d..fff25ea0a7 100644 --- a/content/concepts/payment-system-basics/accounts/depositauth.md +++ b/content/concepts/payment-system-basics/accounts/depositauth.md @@ -2,9 +2,12 @@ _(Added by the [DepositAuth amendment][].)_ -Deposit Authorization is an optional feature of an [account](accounts.html) in the XRP Ledger. With Deposit Authorization enabled, transactions cannot send value of any kind to the account unless the sender of those transactions is the account itself. This includes transfers of XRP and issued currencies. +Deposit Authorization is an optional [account](accounts.html) setting in the XRP Ledger. If enabled, Deposit Authorization blocks all transfers from strangers, including transfers of XRP and issued currencies. An account with Deposit Authorization can only receive value in two ways: -By default, new accounts have DepositAuth disabled. +- From accounts it has [preauthorized](#preauthorization). +- By sending a transaction to receive the funds. For example, an account with Deposit Authorization could finish an [Escrow](escrow.html) that was initiated by a stranger. + +By default, new accounts have DepositAuth disabled and can receive XRP from anyone. ## Background