# Inactivated Layer 1

If you have a Counterfactual Wallet and have [sent assets from an exchange and they are in your L1 wallet](https://docs-wallet.loopring.io/faqs/wallet-creation-faqs/funds-landed-on-layer-1), you will need to activate your L1 smart contract in order to retrieve those assets.\
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You can read more about how the Counterfactual wallet works [here](https://blogs.loopring.org/counterfactual-wallet-nfts-on-loopring/).