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

# 🛡️ Shielding

> Making Tokens Confidential

Shielding is the process that moves assets out of this transparent environment and into Fluton’s private execution context. When a user shields assets, they are not hiding funds inside a pool or mixing with others. Instead, the assets are converted into an encrypted state that Fluton can execute on privately.

## Shielding Lifecycle

Shielding establishes the starting point for Fluton’s execution lifecycle:

<Steps>
  <Step title="Public Deposit">User deposits their desired assets</Step>
  <Step title="Encrypted State">The assets get converted into an encrypted state</Step>
  <Step title="Encrypted Transfer">The encrypted assets gets transferred into user's wallet</Step>
</Steps>

## Unshielding

Unshielding is the reverse process.

When users choose to exit confidential execution:

* Encrypted balances are settled
* Funds return to a public ERC-20 representation
* Only required settlement data is revealed