Opinion

Our Approach Towards Consumer Protection and Risk Management

Our Approach Towards Consumer Protection and Risk Management

As the crypto industry faces another liquidity crisis, it’s important to understand the practices of risk management, transparency, and consumer protection CoinDCX abides by:

  1. We never expose user funds to price and credit risk
    Your funds are your funds and your crypto is your crypto. We never lend or take any actions with your assets without prior consent.

    All customer assets are held 1:1. This means that customers can access their funds at any time.

  2. We do not  have a native token
    Many exchanges have native tokens that form a large part of their net worth. Native tokens can be used as a store of value and medium of exchange across products and liquidity. Incentives such as airdrops are offered to users to increase the value of native tokens. This exposes the users to asset concentration risk as well as liquidity risk.
    CoinDCX has taken a conscious decision to not have a native token. This helps safeguard our users from the above risks & more that are associated with launching a native token.
  3. Risk Management is an integral part of CoinDCX
    CoinDCX keeps stringent security checks to ensure user funds are safe in hot and cold wallets. CoinDCX wallets are state of the art and have multi-party-computation (MPC) which means that no single transfer from these wallets can happen without going through a set of rules which require authentication from the users themselves.
  4. We are fully audited
    Our systems and processes are regularly audited. We also conduct daily audits of user funds and map them across the wallets. Our 24×7  risk monitoring thresholds ensures we don’t miss events that pose risk to user funds.

We continue to support the Indian crypto industry in a responsible manner,be self compliant and aim to keep  our users  informed and protected to the extent possible. 

Regards,
Team CoinDCX


Disclaimer: The information provided above is informative in nature and relates to services, position and/or methodologies, expressed as on date and may change. The above is a high level paper on CoinDCX’s way to exercise reasonable care in the performance of its duty as a crypto exchange and hence information provided is general in nature and in no manner advisory or attempting to make any representation or warranty on performance of tokens or crypto trade or occurrence of any issue in the industry at any time. User should at all times apply his/her own discretion and consult his/her advisors as may be required.

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