We Are Responsible For Keeping Your Collateral Safe
The buck stops with us. We only partner with New York State Limited Scope Trust financial services companies to hold your collateral, and require that they have insurance against losses stemming from criminal attack of their systems or due to their negligence. PLEASE READ THE TERMS OF THE LOAN AGREEMENT CAREFULLY as we are not required to hold the specific collateral you have provided us, and we are not responsible for maintaining any amount of asset in any form in an amount equal to the amount you provided us as security against the loan.
Your collateral is transferred by you directly to a Coinbase wallet. We encourage you to read Coinbase's security policy here.
We perform daily reconciliations to ensure the balances of collateral in our custodial account match the activity throughout the day. We are in the process of interviewing accounting firms for the purposes of having a SOC-1 audit performed over ours and Residual's processes.