Can I create multiple user accounts using Family Sharing on my iPad?

I recently purchased a new iPad.

Me and my 12-year-old daughter are already setup as a "Family". We each have our own Apple IDs but are part of the same "Family". I have setup screen time limits for her, as well as restricted certain websites / apps etc.

So how does the iPad know who is using it? I'm looking for a way for us to each have our own passwords, so that the iPad knows if she is using it, she needs to have the restrictions applied.

Currently I have the one and only password for it and when she wants to use it, I unlock it for her. I feel like this defeats the point of having the restrictions in the first place. I want the restrictions to apply to her only, and the same iPad to be unrestricted for me.

Is there a way to achieve this?

[Re-Titled by Moderator]