Security breaches in the crypto industry are a reality that cannot be ignored. While EXTRACTBIT employs world-class security measures to prevent attacks, we believe in being prepared for every eventuality. That is why we have established a comprehensive Asset Insurance Fund to act as a safety net for our users.
The SAFU Fund
We call our insurance reserve the Secure Asset Fund for Users (SAFU).
Since our inception, we have allocated 10% of all trading fees generated on the platform directly into this cold wallet fund. The fund is denominated in a mix of stablecoins (USDT, USDC), Bitcoin (BTC), and Fiat currency to hedge against market volatility. This ensures that the value of the insurance pool remains stable even during bear markets.
Coverage Scope
The SAFU fund is designed to cover losses in extreme cases such as:
- Platform Breaches: In the unlikely event of a successful hack of EXTRACTBIT's hot wallets, the insurance fund will be used to reimburse affected users dollar-for-dollar.
- System Failures: Losses incurred due to critical system errors or malfunctions on our end.
Note: The insurance fund does not cover losses resulting from personal account negligence, such as sharing your password or falling victim to a phishing scam outside of our platform.
Transparency and Proof of Reserves
We believe the insurance fund should be verifiable. We periodically publish the public addresses of our SAFU wallets so that the community can monitor the balance and inflows. This transparency ensures that the funds are actually there and are not being misused.
Peace of Mind
Trading involves market risk, but it shouldn't involve platform risk. With our Asset Insurance protocols, you can trade with the confidence that extensive financial backing protects your hard-earned assets.