> ## Documentation Index
> Fetch the complete documentation index at: https://docs.layerswap.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Refunds

> Learn when and how Layerswap refunds a swap, what the refund address is for, what amount is returned, and how to identify the refund transaction.

When a swap cannot be completed after the user has sent funds, Layerswap automatically initiates a refund. The refund is always processed on the **source chain** in the **source token**. Gas fees for processing the refund transaction are deducted from the refund amount.

## When does a refund happen?

* **Quote expiration:** The user's deposit arrived after the original quote expired, and Layerswap could not obtain a valid new quote.
* **Insufficient liquidity:** The solver does not have enough liquidity to complete the transaction.
* **Provider execution failure:** A swap provider (e.g. a DEX) encountered an error during execution.
* **Destination chain unavailability:** The destination chain is unavailable due to an RPC outage or chain reorganization.

Before refunding, Layerswap **retries execution automatically**. A refund is initiated only once retries are exhausted and a `refund_address` is available. Without a refund address, the swap remains `ls_transfer_pending` while Layerswap continues retrying.

## Refund statuses

When a refund is initiated, the swap transitions to `pending_refund`. Once the refund transaction is confirmed on-chain, the status changes to `refunded`.

| `status`         | Meaning                                |
| ---------------- | -------------------------------------- |
| `pending_refund` | Refund in progress                     |
| `refunded`       | Refund confirmed on the source network |

See the [Swap lifecycle](/concepts/swap-lifecycle) for the full status flow and the [what can go wrong](/concepts/swap-lifecycle#what-can-go-wrong) matrix.

## Refund address

You can provide a `refund_address` when creating a swap. This must be a valid address on the source network. If the swap route involves a swap provider, the refund address is **required**.

## Refund amount

The refund is sent in the source token, **minus the source-network gas fee** for the refund transaction. If the refund amount is less than the gas fee, no refund is issued.

## Identifying a refund transaction

A refunded swap will have a transaction with `type: "refund"` in its `transactions` array. Read the swap with [`GET /swaps/{id}`](/api-reference/swaps/get-swap-details):

```bash theme={null}
curl -X GET \
  'https://api.layerswap.io/api/v2/swaps/d0050d05-4e75-4e9c-8b89-c1c8cbee4a62' \
  -H 'accept: application/json' \
  -H 'X-LS-APIKEY: YOUR_API_KEY'
```

The response contains the swap with `status: "refunded"` and a `refund` transaction in the `transactions` array:

```json theme={null}
{
  "data": {
    "swap": {
      "id": "d0050d05-4e75-4e9c-8b89-c1c8cbee4a62",
      "status": "refunded",
      "source_network": { "name": "ETHEREUM_MAINNET", "display_name": "Ethereum" },
      "source_token": { "symbol": "mUSD", "display_asset": "MetaMask USD" },
      "destination_network": { "name": "ETHEREUM_MAINNET", "display_name": "Ethereum" },
      "destination_token": { "symbol": "ETH", "display_asset": "ETH" },
      "requested_amount": 0.052854,
      "transactions": [
        {
          "from": "0x425ce7a885c77b6b417e886ae542318250628a9d",
          "to": "0x08b00ceee2fb66029b53d76110b19eeaabfd1e65",
          "transaction_hash": "0x01885c930c698370b82f2614692eab5305e3d493238eb9750c88f80e172d0884",
          "amount": 0.052854,
          "type": "input",
          "status": "completed",
          "token": { "symbol": "mUSD" },
          "network": { "name": "ETHEREUM_MAINNET" }
        },
        {
          "from": "0x08b00ceee2fb66029b53d76110b19eeaabfd1e65",
          "to": "0x425ce7a885c77b6b417e886ae542318250628a9d",
          "transaction_hash": "0xa8a71bd2093c09b254f870fdeef38639f5ce712645f2c425acedb655616967ef",
          "amount": 0.052854,
          "type": "refund",
          "status": "completed",
          "token": { "symbol": "mUSD" },
          "network": { "name": "ETHEREUM_MAINNET" }
        }
      ]
    }
  }
}
```

The `refund` transaction shows the on-chain transfer back to the user in the original source token. Each transaction has its own `status`; the swap-level `status` describes the overall lifecycle.

## Next

[Track swaps](/api/track-swaps) covers polling, webhooks, transaction-hash lookup, and status filters.