<h1 class="wp-block-heading">Compensation Arrangement</h1>



At EX.IO, ensuring the protection and security of our users’ assets is of paramount importance. We understand the potential risks associated with storing and trading virtual assets, to provide peace of mind to our valued users, we have implemented a comprehensive compensation arrangement. The arrangement to safeguard our users’ assets includes a combination of a reputable third-party Virtual Asset Custody insurance programme for cold storage and designated compensation funds set aside for hot storage.



Our insurance programme is led by an AM Best A+ rated insurer, a global specialty (re)insurer. This collaboration enables us to provide an additional layer of security to our users’ assets and demonstrate our commitment to be aligned with the SFC’s standard.



Our compensation arrangement offers robust coverage against various risks, including potential loss arise from hacking incidents on the platform, theft, fraud, or default on the part of us (whether or not as a result of its acts, errors, omissions, or gross negligence). In our selection process of an appropriate third-party insurer, we have based our choice of insurance company on verifiable and quantifiable criteria, including a valuation schedule of assets insured, overall maximum coverage, as well as any excluding factors. Through extensive risk assessment and evaluation, we have ensured that our insurance policy as well as the designated funds adequately address the unique challenges within the cryptocurrency ecosystem.



We have meticulously crafted our compensation arrangement to cover potential loss of 50% of users’ virtual assets in cold storage and 100% of users’ virtual assets in hot storage. We believe that the implementation of this comprehensive compensation arrangement strengthens our commitment to our users’ security and positions us as a trustworthy virtual asset exchange. We continuously review and update our compensation arrangement, including the insurance policy and reserved funds, to adapt to emerging risks and align with best practices in the industry.



It is crucial to note that insurance coverage might have certain limitations, exclusions, and deductibles. It is important to note that our insurance does not cover losses that occur due to unauthorized access to user’s personal EX.IO account as a result of a breach or if users lose their credentials. Additionally, non-fungible tokens are not covered by our policy. It is users’ responsibility to ensure a strong password is used and to maintain control over all login credentials. It is also crucial to understand that virtual currency is not considered legal tender and is not supported by the government. While we make best efforts to compensate you in the event of a covered security incident, it is possible that losses may exceed insurance recoveries and our designated funds, leaving our users’ virtual assets at risk. We remain dedicated to maintaining the highest level of security protocols and actively work towards fostering a secure trading environment for our users. By constantly refining our compensation arrangement and employing robust risk management practices, we aim to instil confidence and trust among our community members.



In conclusion, at EX.IO, we take pride in our comprehensive compensation arrangement, which serves as an additional layer of protection for our user’s virtual assets. We strive to provide a safe and secure platform that enables our users to navigate the exciting world of virtual assets with confidence.