The process of setting up (or initializing) Jade refers to saving a recovery phrase to your device and protecting it behind a PIN. Your recovery phrase is used to derive your private keys, which are needed to spend your bitcoin. However Jade can also be used as a stateless signing device, which does not save any encrypted wallet material to your Jade. Operating Modes Before proceeding with an advanced set up of Blockstream Jade, it is helpful to understand each of Jade's operating modes: Hardware Wallet: During initialization, Jade will save your encrypted wallet data to the device and allow it to be conveniently accessible via PIN. However, Jade’s advanced security model means that there is no useful wallet data stored while your device is locked. This makes Jade unique from other hardware wallets which are vulnerable to physical key extraction if the device alone is found by an attacker. Stateless Signing Device: Load a wallet to Jade temporarily by manually entering a recovery phrase or by scanning a supported QR format (such as SeedQR). This wallet will be forgotten on reboot and no information is saved to Jade. Each operating mode has comparable security when considering physical key extraction, so your usage method should be chosen based on your unique preferences. Advanced Setup The following instructions will provide workflows for both the hardware wallet and signing device operating modes. 1. Turn on Jade by plugging it in or holding the power button. If you'll be using Jade without a USB connection, you may need to charge the battery as well. 2. Click Setup Jade and choose Advanced Setup. This path will present BIP39 passphrase and SeedQR options. Users should only choose an advanced setup if they fully understand the implications of these features, as the added complexity may lead to a loss of funds. 3. Choose your Setup Method: Create New Wallet: A new recovery phrase will be generated leading to a fresh wallet Restore Wallet: Enter an existing recovery phrase or create one using dice rolls or other offline methods and let Jade calculate your final word for you 4. Write down and protect your recovery phrase, do not take a picture of it or store it online. Warning: Your recovery phrase is your wallet and it should never be entered on another device unless in emergency situations. 5. Pass the recovery phrase confirmation by selecting the word that matches your written recovery phrase backup. 6. Jade will then ask if you would like to create a SeedQR. A SeedQR is a hand-drawn version of your recovery phrase in QR code format that can be scanned with Jade's camera for stateless signing device use. Follow the instructions on Jade to transcribe your SeedQR on a provided template if you decide to create one. 7. Choose whether or not you would like to use a BIP39 passphrase. BIP39 passphrases are used to add additional words or characters to your recovery phrase to create a completely new wallet than the one that would be accessed with only your 12/24 recovery phrase words. Note: Only select Yes for this option if you are fully aware of how passphrases work, as this feature can easily lead to a user losing access to their funds if not careful. 8. To finish Jade initialization, select your desired communication method to create a PIN and use Jade more like a traditional hardware wallet. Users who prefer to only use Jade as as stateless signing device can skip this step by selecting QR. If you do not set a PIN, your wallet will be forgotten on reboot and you will need to scan a SeedQR or manually enter your recovery phrase upon the next session. Tip: Setting a PIN does not prevent you from also using Jade as a stateless signing device. Only one seed can be stored encrypted with PIN at a time, however many others can be accessed alongside your PIN-protected wallet by using Jade's Temporary Signer or Scan SeedQR option. 9. If you choose to set a PIN, connect Jade to a compatible wallet app and follow the instructions for your specific platform on connecting hardware devices. Users who skipped PIN setup can immediately begin using Jade as an air-gapped device and can access their wallet on subsequent sessions by navigating to Scan SeedQR on the main menu.