Are my deposits safe with you?

Last updated: September 23rd, 2015

At Betcoin.ag your deposits are 100% safe. Storage and management of player funds is the most important part of our business. We know that we need to keep your funds safe and allow you to withdraw your funds at anytime. This process is broken down into 2 parts:

  1. Fund Segregation
  2. Fund Storage

1. Fund Segregation

Player Funds

Player deposits are segregated from company funds. We make sure that at any time we can cover if every player were to withdraw their full balance. The full balance of every player is safely and securely stored and ready to be sent to all players in the event that every player were to initiate a withdraw request at the same time (this obviously may take a few days to restore all cold wallets which will be discussed below).

Company Funds

Company funds are stored and tracked separately and used separately. We DO NOT and WILL NEVER use player funds to handle day to day operations of the Betcoin.ag brand. This is the most important thing to us and we understand how important it is to our players.

2. Fund Storage

Now let's look at how we store funds. We have 3 wallet storage levels: hot, warm and cold.

Hot Wallets

We keep a very small amount of player funds in hot wallets where we can handle most withdrawal requests instantly. These wallets are used for the vast majority of our daily transactions. Far less than 1% of all player funds are ever stored in hot wallets. We follow the most stringent security measures with these hot wallets.

Warm Wallets

We keep a bit larger amount of player funds (~1% - 3%) in warm wallets. These wallets are used in the case that we are unable to completely process a player withdrawal through our hot wallets. The warm wallets offer an extra layer of security insofar as the private keys are stored completely away from any Betcoin.ag servers and allow us to hold a bit more funds outside of our hot wallets. Our warm wallets offer the flexibility for us to quickly handle withdrawals that may exceed the amount of our hot wallet.

We are constantly transferring funds to and from our hot and warm wallets as necessary. Our warm wallets are the buffer between our hot wallets and our cold wallets.

Cold Wallets

The vast majority of player funds (~97%+) are stored in our cold wallets. These wallets take complete advantage of native bitcoin security features which offer the highest level of security. To start out, all cold wallets are multi-signature wallets. This means that in order to access and spend funds from these wallets you must have access to 2 of the 3 addresses associated with this multi-signature cold storage wallet. These 3 separate addresses associated with each wallet all have their private keys stored in different cold storage methods, such as a brain wallet, flash storage and traditional paper storage. Because these wallets are cold, every private key associated with each multi-signature wallet has been created offline and is only stored offline. To further increase security, before these private keys are ever stored offline they first go through an encryption process which provides yet another layer of security. Suffice to say, your funds are secure with Betcoin.ag.

This should provide some insight into the overall process of how we store funds at Betcoin.ag. We understand the importance of keeping your funds secure and do everything we can to keeping this as a top priority.

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