---
updatedAt: 2026-05-08T13:20:55.000Z
agentTools:
  projectIndex: https://docs.lmnl.app/v2/llms.txt
---

# Set up v2 hot wallets with Liminal Firewall

# Overview

Liminal recently launched v2 hot wallets with the security benefits of Liminal Firewall. Your v2 wallet transactions will be screened through your configured Firewall policies. To learn more about v1 and v2 wallets, see [Wallets versions: v1 and v2](https://docs.lmnl.app/docs/wallets-2#wallet-versions-v1-and-v2).

Take the following steps to set up your v2 hot wallet.

## Step 1: Create a v2 hot wallet

Liminal Firewall supports all outgoing transactions from v2 hot wallets. You can create both withdrawal and deposit hot wallets. A withdrawal hot wallet is used to withdraw funds out of Liminal wallets into external destination wallets. A deposit hot wallet is used to collect funds from your customers. To create a hot MPC wallet, see [Create a hot MPC wallet](https://docs.lmnl.app/v2/docs/create-a-hot-wallet). Ensure to use the Create a hot v2 wallet API.

## Step 2: Set up Liminal Firewall

Liminal Firewall is a set of policies designed to assess your transactions for any potential risks. You can integrate with the third-party providers to implement the Transaction Risk and Travel Rule compliance policies. To learn more, see [Liminal Firewall](https://docs.lmnl.app/docs/liminal-firewall).

To set up Liminal Firewall for your organisation, follow the steps illustrated in [Set up Liminal Firewall](https://docs.lmnl.app/docs/achieve-compliance-with-liminal-firewall).

Once the firewall rules are applied, you can view the enabled policies for your organisation in Liminal Vaults. Take the following steps to view enabled Firewall policies.

1. Log into [Vaults](https://vaults.lmnl.app/) .
2. Go to **Settings**.
3. Scroll down to **Policy Management** > **Firewall**, and select **View** to see all the enabled policies for your organisation.

<Image border={false} src="https://files.readme.io/03376cdf786860b0b35559e14004c47ffbb6fab918be1ac512e6778084978350-image.png" />

4. Select **View** for to a policy to view all the configured rules.

## Step 3: Set up automatic transaction signing

Once a transaction is successfully verified and accepted, a final signature is required before broadcasting it to the blockchain. The final signature is automatically handled by the [Start or stop transaction execution](https://docs.lmnl.app/v2/reference/startorstoptransactionbroadcasting) API. During the initial setup, run this API with the `action` parameter set to `start` to enable automatic signing and execution of approved transactions. After setup, the system will automatically process future transactions for signing and broadcasting.

# Processing Withdrawals

You can configure the following policies after creating the [hot MPC withdrawal v2 wallet](https://docs.lmnl.app/v2/docs/create-hot-mpc-deposit-and-withdrawal-wallets):

* [Transaction policies](https://docs.lmnl.app/v2/docs/policy-management-guide), and
* [Compliance policies](https://docs.lmnl.app/v2/docs/liminal-firewall) for the **Liminal** firewall.

Once you have configured your withdrawal wallet with the required policies, we recommend using the following APIs:

1. **Use the [Create a transaction request API](https://docs.lmnl.app/v2/reference/sendmanytransaction-1)**: To send a single or multiple transactions from a v2 withdrawal wallet to the specified destination addresses.
2. **Automatic transaction signing** using [Start or stop transaction execution API](https://docs.lmnl.app/v2/reference/startorstoptransactionbroadcasting-1): Use this API endpoint when you want a transaction to be automatically signed and approved within a one-minute interval for broadcasting it on-chain.
3. **Manual transaction signing** using the [Submit Transaction API](https://docs.lmnl.app/v2/reference/submittransaction-1):  Use this API when you want the Firewall-enabled transaction to be signed and approved manually with a custom CRON job.