# Arbitrum L3 and on-chain settlement On-chain settlement refers to the process of finalizing transactions directly on our L3 blockchain network. Unlike centralized exchanges, where trades are executed and settled off-chain within the exchange's internal ledger, EVEDEX leverages blockchain technology to ensure users' transparency, security, and self-custody. **Our L3 network, Eventum, handles the following:** * **Position and Funds Data**: Logs user trading positions and balances. * **Liquidation and ADL Data**: Records liquidation events and ADL (Auto-Deleveraging) adjustments. * **Funding Rates and Fees**: Tracks funding rates and trading fees paid. * **Auditability**: Provides open, verifiable data for anyone to review. We have shared the entire journey of our current blockchain solution on this [page](/key-features-and-components/advanced-layer-3-infrastructure.md). You can find detailed insights and background information there. #### Interaction Between EVEDEX Core Engine and Blockchain User actions are periodically recorded in the blockchain to verify and ensure the correctness of the backend data. Key scenarios include: * **Periodic Updates**: User position data is written to the blockchain after sufficient changes have accumulated. * **Withdrawals**: When a user withdraws funds, the data is recorded on-chain to verify backend correctness. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.evedex.com/key-features-and-components/trading-platform-and-matching-engine/arbitrum-l3-and-on-chain-settlement.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.