diff --git a/lib/bcoin/wallet.js b/lib/bcoin/wallet.js
index 7c4df38b..7bbe073a 100644
--- a/lib/bcoin/wallet.js
+++ b/lib/bcoin/wallet.js
@@ -800,22 +800,23 @@ Wallet.prototype.syncOutputDepth = function syncOutputDepth(tx, callback) {
 
     utils.forEachSerial(Object.keys(accounts), function(index, next) {
       var paths = accounts[index];
-      var depth = { changeDepth: -1, receiveDepth: -1 };
+      var receiveDepth = -1;
+      var changeDepth = -1;
 
       for (i = 0; i < paths.length; i++) {
         path = paths[i];
 
         if (path.change) {
-          if (path.index > depth.changeDepth)
-            depth.changeDepth = path.index;
+          if (path.index > changeDepth)
+            changeDepth = path.index;
         } else {
-          if (path.index > depth.receiveDepth)
-            depth.receiveDepth = path.index;
+          if (path.index > receiveDepth)
+            receiveDepth = path.index;
         }
       }
 
-      depth.changeDepth++;
-      depth.receiveDepth++;
+      receiveDepth += 2;
+      changeDepth += 2;
 
       self.getAccount(+index, function(err, account) {
         if (err)
@@ -824,7 +825,7 @@ Wallet.prototype.syncOutputDepth = function syncOutputDepth(tx, callback) {
         if (!account)
           return next();
 
-        account.setDepth(depth.receiveDepth + 1, depth.changeDepth + 1, function(err, rec, chng) {
+        account.setDepth(receiveDepth, changeDepth, function(err, rec, chng) {
           if (err)
             return next(err);
 
@@ -1547,8 +1548,8 @@ function Account(options) {
   this.witness = options.witness || false;
   this.accountKey = options.accountKey;
   this.accountIndex = options.accountIndex;
-  this.receiveDepth = options.receiveDepth || 1;
-  this.changeDepth = options.changeDepth || 1;
+  this.receiveDepth = options.receiveDepth || 0;
+  this.changeDepth = options.changeDepth || 0;
   this.type = options.type || 'pubkeyhash';
   this.keys = [];
   this.m = options.m || 1;
@@ -1670,29 +1671,10 @@ Account.prototype.init = function init(callback) {
 
   this.initialized = true;
 
-  for (i = 0; i < this.receiveDepth - 1; i++)
-    addresses.push(this.deriveReceive(i));
+  assert(this.receiveDepth === 0);
+  assert(this.changeDepth === 0);
 
-  for (i = 0; i < this.changeDepth - 1; i++)
-    addresses.push(this.deriveChange(i));
-
-  for (i = this.receiveDepth; i < this.receiveDepth + this.lookahead; i++)
-    addresses.push(this.deriveReceive(i));
-
-  for (i = this.changeDepth; i < this.changeDepth + this.lookahead; i++)
-    addresses.push(this.deriveChange(i));
-
-  this.receiveAddress = this.deriveReceive(this.receiveDepth - 1);
-  this.changeAddress = this.deriveChange(this.changeDepth - 1);
-
-  addresses.push(this.receiveAddress);
-  addresses.push(this.changeAddress);
-
-  return this.saveAddress(addresses, function(err) {
-    if (err)
-      return callback(err);
-    return self.save(callback);
-  });
+  this.setDepth(1, 1, callback);
 };
 
 /**
@@ -1882,7 +1864,7 @@ Account.prototype.createChange = function createChange(callback) {
 /**
  * Create a new address (increments depth).
  * @param {Boolean} change
- * @returns {KeyRing}
+ * @param {Function} callback - Returns [Error, {@link KeyRing}].
  */
 
 Account.prototype.createAddress = function createAddress(change, callback) {
@@ -2028,7 +2010,7 @@ Account.prototype.setDepth = function setDepth(receiveDepth, changeDepth, callba
   if (changeDepth > this.changeDepth) {
     for (i = this.changeDepth; i < changeDepth; i++) {
       change = this.deriveChange(i);
-      addresses.push(this.changeAddress);
+      addresses.push(change);
     }
 
     for (i = changeDepth; i < changeDepth + this.lookahead; i++)