# Token UTXOs and deposits

> Why each holding carries a 5 KAS deposit, and when to merge.

On Kaspa, tokens live in UTXOs (cells), and every cell must carry some KAS. Each buy creates a new token UTXO in your wallet carrying a **5 KAS deposit**. It is still your KAS: it is returned when you sell those tokens.

Your [Portfolio](https://app.kasseal.com/u/me) shows this separately as **Deposits**, so money is never “missing”.

## Merge and split

- A sell spends one UTXO holding exactly the amount sold. If yours holds more, the app splits it first (one quick signature), then sells.
- If you hold a token in several UTXOs, a sell can take several signatures. Above 3 UTXOs the app shows **Merge recommended**; a merge combines them into one and trades nothing.

You can merge from the holdings strip on the token page or from the Portfolio.

Source: https://app.kasseal.com/docs/utxos