Crypto-Asset Segregation

Client Communication & Transparency on Asset Segregation

How Whitely segregates and protects client crypto-assets, and how clients can verify holdings.

Segregation of Client Assets

The Company ensures that clients’ crypto-assets are strictly segregated from its own holdings. All client assets are maintained in dedicated wallets separate from the Company’s operational and proprietary accounts. This segregation safeguards client funds against potential financial risks associated with the Company’s operations and maintains transparency in asset management.

Security Measures for Crypto-Asset Protection

• Cold Storage: The majority of client assets are stored in offline cold wallets to mitigate cyber risk.
• Multi-Signature Wallets: Transactions require multiple authorized signatures, reducing the risk of unauthorized access or internal fraud.
• Restricted Access Protocols: Access is limited to designated personnel via multi-factor authentication (MFA) and strict internal controls.
• Regular Security Audits: Periodic security assessments ensure alignment with current standards and industry best practices.

Custodianship and Limitations of Liability

The Company acts as custodian for clients’ crypto-assets, providing safekeeping services. While rigorous security measures are implemented, the Company does not assume liability for external risks beyond its control, including but not limited to:

• Blockchain network failures or disruptions;
• Force majeure events (e.g., cyber-attacks on third-party providers);
• Governmental actions or regulatory changes impacting crypto transactions.

Client Verification and Reporting

• Real-Time Access: Clients may verify balances at any time via the secure online portal.
• Periodic Statements: Regular statements confirm holdings and summarize balances and transaction history.
• On-Demand Verification: Upon request, detailed reports are provided within the Company’s designated response timeframe.
• Audit Reports: Clients may review audit reports evidencing compliance with segregation and security protocols.