The deposit's job is to show the buyer is serious, not to fund the purchase. It is held in trust, typically by the listing brokerage or the buyer's lawyer regulated by the Law Society of Saskatchewan, and applied toward the purchase price at possession, so a seller is not actually receiving usable funds until the deal closes.
A seller can ask for a larger deposit on a competitive offer as a sign of buyer commitment, and a smaller deposit is not automatically a red flag, since it says more about the buyer's cash position than about their intent to complete the purchase.
What the deposit amount signals is worth reading alongside the rest of the offer, not on its own. Get your hand-reviewed valuation from Joel Dyck.