The safekeeping of user assets is our single most critical responsibility. To mitigate the risk of cyber attacks, EXTRACTBIT employs a rigorous "Cold Storage" strategy. This means the vast majority of funds are kept offline, completely inaccessible from the internet and potential hackers.
Hot vs. Cold Wallets
Hot Wallets: These are online wallets used to process immediate withdrawal requests. We keep only a small fraction of funds (typically less than 2-3%) in hot wallets to ensure liquidity for daily operations.
Cold Wallets: These are offline wallets (hardware devices, paper wallets, air-gapped computers) that have never been connected to the internet. Over 98% of user funds are stored here.
Physical Security of Cold Storage
Our cold storage protocols go beyond just being offline. The private keys to these wallets are geographically distributed in secure vaults around the world.
- Multi-Signature Technology: Accessing the cold funds requires multiple keys held by different authorized personnel. No single person can move the funds alone.
- Deep Verification: Withdrawals from cold storage require a strict manual verification process, including video verification and multiple layers of administrative approval.
- Physical Vaults: The storage devices are kept in bank-grade vaults with 24/7 physical security and biometric access controls.
Proof of Reserves
We believe you shouldn't just take our word for it. We are committed to regular "Proof of Reserves" audits. This cryptographic verification proves that we hold 100% of user assets in reserve (1:1 backing) plus our insurance funds. Your assets are never lent out or used for unauthorized investments.
By keeping your assets in cold storage, we ensure that even in the most catastrophic online security breach, your funds remain safe, secure, and untouched.