diff --git a/swap/src/cli.rs b/swap/src/cli.rs
index 1f72e89d..a38b33ab 100644
--- a/swap/src/cli.rs
+++ b/swap/src/cli.rs
@@ -5,9 +5,12 @@ use uuid::Uuid;
 
 #[derive(structopt::StructOpt, Debug)]
 pub struct Options {
-    // TODO: Default value should points to proper configuration folder in home folder
-    #[structopt(long = "data-dir", default_value = "./.swap-data/")]
-    pub data_dir: String,
+    #[structopt(
+        long = "data-dir",
+        help = "Provide a custom path to the data directory.",
+        parse(from_os_str)
+    )]
+    pub data_dir: Option<PathBuf>,
 
     #[structopt(subcommand)]
     pub cmd: Command,
@@ -80,7 +83,7 @@ pub enum Resume {
 pub struct Config {
     #[structopt(
         long = "config",
-        help = "Provide a custom path to a configuration file. The configuration file must be a toml file.",
+        help = "Provide a custom path to the configuration file. The configuration file must be a toml file.",
         parse(from_os_str)
     )]
     pub config_path: Option<PathBuf>,
diff --git a/swap/src/config.rs b/swap/src/config.rs
index 4eb21ceb..18a713a3 100644
--- a/swap/src/config.rs
+++ b/swap/src/config.rs
@@ -1,4 +1,4 @@
-use crate::fs::ensure_directory_exists;
+use crate::{fs::ensure_directory_exists, settings::Settings};
 use anyhow::{Context, Result};
 use config::{Config, ConfigError};
 use dialoguer::{theme::ColorfulTheme, Input};
@@ -17,7 +17,6 @@ const DEFAULT_BITCOIND_TESTNET_URL: &str = "http://127.0.0.1:18332";
 const DEFAULT_MONERO_WALLET_RPC_TESTNET_URL: &str = "http://127.0.0.1:38083/json_rpc";
 
 #[derive(Clone, Debug, serde::Serialize, serde::Deserialize, PartialEq)]
-#[serde(deny_unknown_fields)]
 pub struct File {
     pub bitcoin: Bitcoin,
     pub monero: Monero,
@@ -117,6 +116,14 @@ pub fn query_user_for_initial_testnet_config() -> Result<File> {
     })
 }
 
+pub fn settings_from_config_file_and_defaults(config: File) -> Settings {
+    Settings::testnet(
+        config.bitcoin.bitcoind_url,
+        config.bitcoin.wallet_name,
+        config.monero.wallet_rpc_url,
+    )
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
diff --git a/swap/src/fs.rs b/swap/src/fs.rs
index be07733b..c0de4ec0 100644
--- a/swap/src/fs.rs
+++ b/swap/src/fs.rs
@@ -5,18 +5,23 @@ use std::path::{Path, PathBuf};
 /// This is to store the configuration and seed files
 // Linux: /home/<user>/.config/xmr-btc-swap/
 // OSX: /Users/<user>/Library/Preferences/xmr-btc-swap/
-#[allow(dead_code)]
-fn config_dir() -> Option<PathBuf> {
+fn default_config_dir() -> Option<PathBuf> {
     ProjectDirs::from("", "", "xmr-btc-swap").map(|proj_dirs| proj_dirs.config_dir().to_path_buf())
 }
 
-#[allow(dead_code)]
 pub fn default_config_path() -> anyhow::Result<PathBuf> {
-    config_dir()
+    default_config_dir()
         .map(|dir| Path::join(&dir, "config.toml"))
         .context("Could not generate default configuration path")
 }
 
+/// This is to store the DB
+// Linux: /home/<user>/.local/share/nectar/
+// OSX: /Users/<user>/Library/Application Support/nectar/
+pub fn default_data_dir() -> Option<std::path::PathBuf> {
+    ProjectDirs::from("", "", "nectar").map(|proj_dirs| proj_dirs.data_dir().to_path_buf())
+}
+
 pub fn ensure_directory_exists(file: &Path) -> Result<(), std::io::Error> {
     if let Some(path) = file.parent() {
         if !path.exists() {
diff --git a/swap/src/lib.rs b/swap/src/lib.rs
index 22b7c4a5..dd7d02c3 100644
--- a/swap/src/lib.rs
+++ b/swap/src/lib.rs
@@ -17,7 +17,6 @@
 )]
 
 pub mod bitcoin;
-pub mod config;
 pub mod database;
 pub mod monero;
 pub mod network;
@@ -26,5 +25,4 @@ pub mod seed;
 pub mod settings;
 pub mod trace;
 
-mod fs;
 mod serde_peer_id;
diff --git a/swap/src/main.rs b/swap/src/main.rs
index 78d1d7af..98b4f1a5 100644
--- a/swap/src/main.rs
+++ b/swap/src/main.rs
@@ -15,15 +15,16 @@
 use crate::{
     cli::{Command, Options, Resume},
     config::{
-        initial_setup, query_user_for_initial_testnet_config, read_config, ConfigNotInitialized,
+        initial_setup, query_user_for_initial_testnet_config, read_config,
+        settings_from_config_file_and_defaults, ConfigNotInitialized,
     },
+    settings::Settings,
 };
 use anyhow::{Context, Result};
 use database::Database;
-use fs::default_config_path;
+use fs::{default_config_path, default_data_dir};
 use prettytable::{row, Table};
 use protocol::{alice, bob, bob::Builder, SwapAmounts};
-use settings::Settings;
 use std::{path::PathBuf, sync::Arc};
 use structopt::StructOpt;
 use trace::init_tracing;
@@ -53,13 +54,18 @@ async fn main() -> Result<()> {
 
     let opt = Options::from_args();
 
+    let data_dir = if let Some(data_dir) = opt.data_dir {
+        data_dir
+    } else {
+        default_data_dir().context("unable to determine default data path")?
+    };
+
     info!(
         "Database and Seed will be stored in directory: {}",
-        opt.data_dir
+        data_dir.display()
     );
-    let data_dir = std::path::Path::new(opt.data_dir.as_str()).to_path_buf();
-    let db_path = data_dir.join("database");
 
+    let db_path = data_dir.join("database");
     let seed = config::seed::Seed::from_file_or_generate(&data_dir)
         .expect("Could not retrieve/initialize seed")
         .into();
@@ -78,7 +84,7 @@ async fn main() -> Result<()> {
                 btc: receive_bitcoin,
             };
 
-            let (bitcoin_wallet, monero_wallet) = setup_wallets(settings.wallets).await?;
+            let (bitcoin_wallet, monero_wallet) = init_wallets(settings.wallets).await?;
 
             let swap_id = Uuid::new_v4();
 
@@ -117,7 +123,7 @@ async fn main() -> Result<()> {
                 xmr: receive_monero,
             };
 
-            let (bitcoin_wallet, monero_wallet) = setup_wallets(settings.wallets).await?;
+            let (bitcoin_wallet, monero_wallet) = init_wallets(settings.wallets).await?;
 
             let swap_id = Uuid::new_v4();
 
@@ -162,7 +168,7 @@ async fn main() -> Result<()> {
         }) => {
             let settings = init_settings(config.config_path)?;
 
-            let (bitcoin_wallet, monero_wallet) = setup_wallets(settings.wallets).await?;
+            let (bitcoin_wallet, monero_wallet) = init_wallets(settings.wallets).await?;
 
             let alice_factory = alice::Builder::new(
                 seed,
@@ -187,7 +193,7 @@ async fn main() -> Result<()> {
         }) => {
             let settings = init_settings(config.config_path)?;
 
-            let (bitcoin_wallet, monero_wallet) = setup_wallets(settings.wallets).await?;
+            let (bitcoin_wallet, monero_wallet) = init_wallets(settings.wallets).await?;
 
             let bob_factory = Builder::new(
                 seed,
@@ -224,12 +230,12 @@ fn init_settings(config_path: Option<PathBuf>) -> Result<Settings> {
         }
     };
 
-    let settings = Settings::from_config_file_and_defaults(config);
+    let settings = settings_from_config_file_and_defaults(config);
 
     Ok(settings)
 }
 
-async fn setup_wallets(settings: settings::Wallets) -> Result<(bitcoin::Wallet, monero::Wallet)> {
+async fn init_wallets(settings: settings::Wallets) -> Result<(bitcoin::Wallet, monero::Wallet)> {
     let bitcoin_wallet = bitcoin::Wallet::new(
         settings.bitcoin.wallet_name.as_str(),
         settings.bitcoin.bitcoind_url,
diff --git a/swap/src/settings.rs b/swap/src/settings.rs
index dee7b84d..74571078 100644
--- a/swap/src/settings.rs
+++ b/swap/src/settings.rs
@@ -1,4 +1,4 @@
-use crate::{bitcoin::Timelock, config::File};
+use crate::bitcoin::Timelock;
 use conquer_once::Lazy;
 use std::time::Duration;
 use url::Url;
@@ -9,15 +9,11 @@ pub struct Settings {
 }
 
 impl Settings {
-    pub fn from_config_file_and_defaults(config: File) -> Self {
-        Settings::testnet(
-            config.bitcoin.bitcoind_url,
-            config.bitcoin.wallet_name,
-            config.monero.wallet_rpc_url,
-        )
-    }
-
-    fn testnet(bitcoind_url: Url, bitcoin_wallet_name: String, monero_wallet_rpc_url: Url) -> Self {
+    pub fn testnet(
+        bitcoind_url: Url,
+        bitcoin_wallet_name: String,
+        monero_wallet_rpc_url: Url,
+    ) -> Self {
         Self {
             wallets: Wallets::testnet(bitcoind_url, bitcoin_wallet_name, monero_wallet_rpc_url),
             protocol: Protocol::testnet(),