> For the complete documentation index, see [llms.txt](https://docs.bxdx.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bxdx.io/introduction-archived/how.md).

# How?

BitX uses a backend router to initiate transfers for traders,The backend script is written in a decentralized manner that gives no power to the deployer or wallet owner!!

Due to the nature of Bitcoin Ordinals theres no such thing as a contract that operates according to code ( Uniswap for example ) so the only possible method to enable trading for BRC20 is thro a node js or similar backend structure.

Using a backend has its pros and cons but its the only doable option in the meantime!

Lets dive into how BitX handles transfers " trades ":&#x20;

<figure><img src="https://397862436-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxXtG9N8vg0yYKtFnYUNK%2Fuploads%2FjnLjJOlLWE3kxZlj2wnN%2FLIQUIDITY.png?alt=media&amp;token=2c186ab4-84b6-4ecc-ba74-b1cfb840a20c" alt=""><figcaption><p>Adding LP to the API wallet for transfers "trading"</p></figcaption></figure>

Despite BitX having initial liquidity for launch , its crucial to attract liquidity providers on the long Run.

Liquidity providers earn 70% of the trading fees ( <mark style="color:red;">1% per trade</mark> ) more info [here](/introduction-archived/fees.md)

<figure><img src="https://397862436-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxXtG9N8vg0yYKtFnYUNK%2Fuploads%2FCqq5eEPCCM8b3cebwBOZ%2FSWAPPING.png?alt=media&amp;token=e9e91945-59ae-4f08-9cfe-8cc2001a5ec8" alt=""><figcaption><p>API wallet handling trades</p></figcaption></figure>

The backend handles all trades automatically according to code along with the safety measures and multiple confirmations for every trade to prevent bugs and fund losses.

<figure><img src="https://397862436-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxXtG9N8vg0yYKtFnYUNK%2Fuploads%2FNjj0K36uXmMssVfnogYs%2F1BTC.png?alt=media&amp;token=c3a79971-72e9-449b-8a47-d1db0eba20ed" alt=""><figcaption></figcaption></figure>
