depositonly

Depositonly is a descriptive term used to denote systems, accounts, or mechanisms that accept funds but restrict or disable withdrawals. In common usage, a deposit-only arrangement is intended to accumulate funds while limiting access to prevent premature spending or misappropriation.

In banking and nonprofit contexts, deposit-only features appear in custodial or trust accounts, donation portals that route contributions into restricted funds, and payroll or savings programs that funnel deposits into a separate vehicle with withdrawal restrictions. These configurations typically specify who may access funds and under what conditions; they may require beneficiary consent, time-based lockups, or regulatory compliance checks.

In software and blockchain, deposit-only constructions exist as smart contracts or wallets that expose a deposit function but exclude withdrawal functionality or require multi-party authorization for releases. Such designs are used for escrow services, staking pools, or charitable donation pools, where the primary aim is to guarantee that contributions are held and not siphoned away before attainment of predefined milestones.

Benefits and risks: deposit-only arrangements can improve fundraising discipline, governance, and security, but they can constrain liquidity and offer reduced flexibility for fund managers or contributors. Transparent records and clear terms are essential to avoid misinterpretation or misuse.

See also: escrow, custodial wallet, trust account, donor-advised fund.