Wallets, Security & Custody

What is a crypto exchange insurance fund?

A crypto exchange insurance fund is a reserve of capital set aside by a platform to cover certain losses, such as those from a security breach or, on derivatives platforms, from positions that cannot be fully liquidated. It is funded by the exchange itself rather than a government scheme, so its scope and payout terms are defined entirely by that platform. For example, a fund might reimburse users if hackers steal assets from the exchange's hot wallet. Coverage varies widely and is not the same as regulated deposit insurance.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.