Ledger allows users to add a 25th word, called a passphrase, beyond the 24 recovery words automatically generated when initializing a wallet. This additional word creates a second set of accounts, with their own addresses and private keys, completely isolated from the main wallet and initially holding a zero balance. Users can choose between two methods: linking the passphrase to a secondary PIN for direct access, or manually entering it temporarily each time they want to reach hidden accounts. This system provides enhanced protection against theft or coercion, as anyone with only the 24 words will never see or access accounts protected by the 25th word. However, forgetting the 25th word results in permanent and irreversible loss of the associated funds, with Ledger providing no backup for this information.
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