# Full Self-Custody

User escrow is held in [Vaults of Individual Participant Escrow (VIPE)](/protocol/whitepaper/vault-of-isolated-participant-escrow.md) onchain so that

1. Funds cannot be co-mingled by the exchange
2. Each user can audit a dedicated proof of reserve
3. Full Self-Custody of funds is preserved at all times

Pre-signed balance states are maintained by each user's [Virtual Node](/protocol/whitepaper/virtual-node.md) so that funds can be withdraw independently of VDEX and in spite of frontend outages.


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