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+# PrivacyLayer User Guide
+
+## What is PrivacyLayer?
+
+PrivacyLayer is a privacy pool built on Stellar that lets you make private transactions using zero-knowledge proofs. Your deposits and withdrawals are cryptographically shielded — nobody can link your deposit to your withdrawal.
+
+### How It Works
+1. **Deposit**: You send tokens into the privacy pool with a secret commitment
+2. **Wait**: Your deposit mixes with others in the pool (more deposits = more privacy)
+3. **Withdraw**: You prove you own a deposit using a ZK proof, without revealing which one
+
+### Privacy Guarantees
+- Deposits and withdrawals are unlinkable
+- Your identity is hidden within the anonymity set (all depositors)
+- ZK proofs verify ownership without revealing the deposit
+
+## Getting Started
+
+### Connect Your Wallet
+1. Install [Freighter](https://freighter.app/) (Stellar wallet browser extension)
+2. Create or import an account
+3. Fund your account with XLM and the supported token
+4. Visit the PrivacyLayer dApp and click "Connect Wallet"
+
+### Make a Deposit
+
+1. **Choose amount**: Select a fixed denomination (e.g., 100, 1000, 10000 tokens)
+2. **Generate note**: The app creates a secret note — **SAVE THIS NOTE SECURELY**
+3. **Confirm deposit**: Approve the transaction in your wallet
+4. **Wait for confirmation**: Transaction finalizes in ~5 seconds on Stellar
+
+**Important**: Your note is the ONLY way to withdraw. If you lose it, your funds are permanently locked.
+
+### Manage Your Notes
+
+Your note looks like: `privacy_0x7a8f3b...c4e2_1000_testnet`
+
+**Storage best practices**:
+- Save to an encrypted password manager (1Password, Bitwarden)
+- Write on paper and store securely (offline backup)
+- Never share your note with anyone
+- Never paste your note in chat or email
+
+### Withdraw Your Funds
+
+1. **Enter your note**: Paste the note you saved during deposit
+2. **Enter recipient address**: The Stellar address to receive funds (can be different from depositor)
+3. **Generate proof**: The app creates a ZK proof (takes 10-30 seconds)
+4. **Submit withdrawal**: The proof is verified on-chain and funds are sent
+5. **Confirmation**: Funds appear in the recipient wallet within ~5 seconds
+
+### Check Pool Status
+
+- **Pool size**: Number of deposits in the pool (larger = more privacy)
+- **Your deposits**: List of active notes you've deposited
+- **Transaction history**: Your deposit/withdrawal history (local only)
+
+## Security Best Practices
+
+### Do
+- Use a fresh wallet address for withdrawals (maximum privacy)
+- Wait for more deposits before withdrawing (larger anonymity set)
+- Keep your notes in encrypted storage
+- Verify the dApp URL before connecting wallet
+
+### Don't
+- Don't withdraw immediately after depositing (timing correlation)
+- Don't withdraw the same amount to a linked address
+- Don't share your notes with anyone
+- Don't use the same deposit/withdrawal pattern repeatedly
+- Don't screenshot your notes (clipboard can be compromised)
+
+## FAQ
+
+**Q: What if I lose my note?**
+A: Your funds cannot be recovered. Always keep secure backups.
+
+**Q: Is there a fee?**
+A: A small fee (0.1-0.5%) is taken on withdrawal to fund the relayer.
+
+**Q: Can the PrivacyLayer team see my transactions?**
+A: No. The ZK proofs ensure even the contract operators cannot link deposits to withdrawals.
+
+**Q: What tokens are supported?**
+A: Currently XLM and USDC on Stellar. More tokens will be added.
+
+**Q: How long should I wait before withdrawing?**
+A: The longer you wait and the more deposits enter the pool, the stronger your privacy. Minimum recommended: wait for 10+ additional deposits.