# 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 ": 

<figure><img src="/files/xtt0ONuaWxwjByg914G7" 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="/files/ZoB5TirwoaJB4hcZpmye" 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="/files/V7cjEYkgqS8O9pFn8gB1" alt=""><figcaption></figcaption></figure>


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