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@@ -220,7 +220,9 @@ When querying a public blockchain explorer, wallets SHOULD connect to the explor
Previously-spendable funds will generally not be lost or become inaccessible after a recovery from a seed, but all information regarding previous outgoing payments will be lost.
-The metadata which a wallet must store regarding the state an identity consists of:
+In order to recover received funds from a seed, the wallet must obtain every notification it has ever received to its notification address, including all spent transactions. It then re-establishes its lookahead window for each subchain by scanning every derived address sequentially until it locates a contiguous block of unused addresses of a user-specified length.
+
+The metadata which a wallet must store to properly process outgoing transactions consists of:
# A list of every payment code to which the identity has sent a notification transaction.
## This list is lost if a wallet must be recovered from a seed.