Within a Vault account, user can generate multiple wallets. All wallets follow bip39 standard for all coins with a 12 words mnemonic seed.
All wallets use hierarchical deterministic address creation following the path m/49'/0'/0'/0 and each generated address has an index price which increments with the new addresses generated.
Each wallet has a master address using path m/49'/0'/0'/1 which is used for withdrawals and serves as an admin managed address. This address is the main hot wallet address which ultimately holds all the wallet funds
Once user makes a deposit to any of the generated addresses, the system automatically sweeps the transaction and send it to the master address with the minimum blockchain transaction fee. This action is called sweeping and is used regularly in the system.
When we refer to the balance, it is the master address balance which should technically have all the funds swept into it.
Sweeping occurs every minute and the time frame for it is static and can not be adjusted. it would take the minimum blockchain fee and make the transfer in the cheapest way.
Ripple or XRP has a simple way for identifying and creating unique deposit addresses by adding a Destination Tag in a transaction. All XRP addresses come with a random tag in the format as follows:
<master address> : <destination tag>
These addresses are separated by comma which is Vault standard. The tag in Vault is a 9 digit random code created and only associated with that specific address.
All funds regardless of their tag go to the master address however it is crucial to identify a transaction with a tag. Addresses receive funds that match the destination tag would only trigger the webhook notifications.
When making withdrawals, there is an optional meta field where user can add the recipient tag to attach in the transaction as well.
For more information and questions please refer to bitHolla Forum.