All customer funds are stored in a cold storage and requires multiple in-person checks to move funds out of this wallet. In addition, signatories of this wallet are dispersed geographically to mitigate single jurisdiction risk. In case this wallet is compromised, we will utilize our Collateral and Insurance Fund that is kept separate and publicly auditable.

The Collateral and Insurance Fund works as insurance for customer assets even in the unlikely event of security breaches of our platform. When a user creates a new saving with us, we lend these assets to our third-party lenders that pays our users the interest as fees. However, these lenders are required to deposit a collateral in order to borrow user funds. This is deposited into the Collateral and Insurance Fund, which will be utilized to make our customers whole in the case of security breaches or other serious emergency situations. The Collateral and Insurance Fund is stored offline (cold storage) and kept separately from our other wallets for extra security measures. We use this method and chose not to pay third-party insurance companies any fees, so as to give out these costs as higher interest returns to our customers.

In addition, we are completely transparent with our Collateral and Insurance Fund, and the Insurance Fund cold wallet balance is publicly auditable at Etherscan.