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

# Multi-Signature Wallets: Definition and Use Cases

What a multisig wallet is, how M-of-N signing works, and how to create a Leather multisig vault and add its accounts to the extension.

A multi-signature (multisig) wallet needs signatures from several keys to move funds. Each key belongs to a co-signer: a person, a device or a service. The wallet's rules set how many signatures a transaction needs.

## How M-of-N works

A multisig setup is described as M-of-N: N keys exist, and any M of them must sign.

* **2-of-3:** any two of three keys must sign. One lost or stolen key cannot move the funds, and losing one key does not lock you out.
* **3-of-5:** any three of five keys must sign.
* **2-of-2:** both keys must sign. Losing either key locks the funds.

![2-of-3 multisig: two of the three keys sign to send bitcoin](https://4209755586-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FaSQhveafXrLjROsW3JZ1%2Fuploads%2FOanhmbT0KvDdE0MYkTEP%2Fd-support-multisig-wallet-01-multisig-2-of-3-v2.png?alt=media\&token=183e860a-2d7b-4cfd-b3d0-9e335515450c)

A transaction stays unfinished until enough co-signers have signed it. Any co-signer can start one.

On Bitcoin, the multisig rules live in the script of the address itself. On Stacks, a multisig account works the same way at the protocol level.

## Benefits

* **No single point of failure:** a thief needs M keys, not one.
* **Shared control:** a business, a family or a DAO can require several people to approve each payment.
* **Escrow:** in a 2-of-3 setup, a neutral third party holds one key and signs only to settle a dispute.

## Trade-offs

* **Coordination:** every payment needs several co-signers, so it takes longer.
* **Key distribution:** if one person holds M of the keys, the setup gives no extra protection.
* **Setup:** all co-signers must record the full setup, not only their own key, to restore the wallet later.

## Multisig vaults in Leather

Leather multisig vaults are created at [app.leather.io/multisig](https://app.leather.io/multisig). A vault holds one or more multisig accounts. Each account is either a Bitcoin account or a Stacks account, not both. Each co-signer signs with an account from their own Leather wallet.

### Create a vault and an account

1. Open [app.leather.io/multisig](https://app.leather.io/multisig) and connect Leather.
2. Click "Create vault" and invite the co-signers.
3. In the vault, click "Create account" and set the signing rules.

### Add a vault account to the extension

You need the Leather extension 6.112.0 or later.

1. Open the vault account on app.leather.io/multisig.
2. Click "Add account to wallet".
3. Leather opens "Add multisig account". Check the address and the signing policy, then click "Confirm".

The vault account appears in the account switcher, nested under your account that signs for it. Add it on each browser where you want to use it. Vault accounts are not yet available in the mobile app.

When you send from a vault account, Leather does not sign on its own. It proposes the transaction to the vault's co-signers. Swap is not available for vault accounts.

## Related

* [Security](/wallet-and-security/security.md)
* [Secure Your Secret Key](/wallet-and-security/secure-secret-key.md)