The whole premise of YouHodler is that "HODLers" can get a cash loan without having to sell their crypto assets or simply store their precious crypto assets at savings accounts. But how can you be sure we will keep your crypto safe and give it back to you after paying the loan? There are several factors in which YouHodler is both morally and legally obligated to securely store your crypto and return your collateral. Let's go over them now.
YOUHODLER VALUES REPUTATION
As you can imagine, YouHodler wouldn't get very far if we didn't abide by the rules. As a team that prides itself on transparency, honesty, and regulation, we take our reputation extremely seriously. We have a global audience depending on us for quick, efficient loans and we do our best to satisfy their needs. As a growing startup in the FinTech sphere, we need to build our reputation from not only the technological spectrum but the moral point of view as well.
YOUHODLER CUSTODY AND INSURANCE
We use industry best practices when it comes to crypto storage. Funds are never stored 100% in hot wallets. Instead, we use a mixture of both hot and cold wallet storage which are secured to protect users’ funds.
In addition, YouHodler is proud to say that we incorporate Ledger Vault’s technology into the platform which produces advanced custody options for all users. Ledger Vault is a core business unit of Ledger, a leader in security for cryptocurrencies and blockchain applications. Leveraging Ledger’s industry-leading and independently-certified security technology, the Ledger Vault provides information technology infrastructure for financial institutions to securely control their crypto assets with a multi-authorization self-custody management solution.
YouHodler benefits from the Ledger Vault’s pooled customized crime insurance program insuring crypto-assets for up to $150 million led by the prestigious Arch UK Lloyds of London syndicate. The insurance covers different risks, including risks of employee theft caused by collusion and third-party theft of private keys/master seed in the event of a physical breach of hardware security.
Additionally with Ledger Vault, YouHodler:
Avoids the risk of a hack: All cold wallet private keys are isolated, stored, and encrypted within a hardware security module, and are never directly handled by day-to-day operators.
Reduces risk of human error: Key usage for signatures is strictly controlled by strong governance rules. The access to the Vault is distributed among different managers with different functions and access rights and mandatory multi-signature principles.
Maintains a level of systems flexibility and instant access to funds. This is possible because of a combination of both hardware and software solutions.
Still has an independent security system: Ledger never holds YouHodler’s keys or its managers. A backup recovery mechanism ensures we can independently recover our funds at any time without needing to use the platform.
The system has no limits for scalability.
3FA SECURITY LEVEL
Following the best practices of the high-end financial services industry, we provide a rare option for users to lock their financial assets. Owners of accounts with balances over 100 USD (or its equivalent in any fiat or cryptocurrency) can request to disable all crypto withdrawal options. All other features will still be available.
We will enable withdrawal only upon the account owners' requests and after additional unique identity verification steps.
This is yet another layer of security in which our customers can use all our services and eliminate any possibility of suspicious withdrawals.
YOUHODLER IS BOUND BY LAW TO RETURN YOUR CRYPTOASSETS
Speeches about moral justice aside, YouHodler also has legal obligations to uphold. Each deal is legally structured by contracts and falls under EU laws. These automated personal contracts ensure each deal is accounted for and properly executed.
YOUHODLER'S DISPUTE RESOLUTION PROCEDURE
YouHodler is a proud and official member of the Blockchain Association, the crypto subgroup of the larger Financial Commission. This independent, self-regulatory organization (SRO) and external dispute resolution (EDR) provider ensures all YouHodler customers have an outlet for dispute resolution outside of the YouHodler platform.
If at any time, YouHodler fails to meet clients' expectations, they can submit a complaint to the Association and receive a quick, unbiased, and non-binding resolution. This is a unique type of crypto security not many others have and we believe it is an effective form of crypto insurance for YouHodler clients. Fortunately, The Blockchain Association has not received a single complaint from any YouHodler clients yet.
Visit their site here to learn more about the Blockchain Association's benefits and how they can help you in the case of a problem.
Also please explore this article on customers' data security issues.
If you'd like to file a complaint with the Blockchain Association, you can do so here.
CIPHERTRACE AND ELLIPTIC BLOCK ACCESS OF BAD ACTORS TO THE PLATFORM
YouHodler has partnerships with Elliptic and CipherTrace to closely analyze all crypto transactions in order to protect the platform and its users from a full range of criminal behavior such as money laundering, fraud schemes, terrorist financing, and sanctions evasion. Elliptic supports over 97% of all crypto assets which helps them offer improved AML and sanctions compliance for YouHodler. By far, this is the largest coverage percentage of any transaction screening solution in the industry. Aside from this, both Elliptic and CipherTrace bring a solid reputation to YouHodler backed by some of the biggest names in the traditional and blockchain industries.