We employ various measures to keep crypto assets used for the Earn Program as safe as possible:
Not all crypto is always used: Coinmerce Earn only borrows crypto held for you by the Foundation to the extent it has an (expected) need (i.e. potential to generate yield) for that particular asset and sufficient intra-day liquidity is available. This means not all your crypto is always lent to Coinmerce Earn. Instead, a portion of eligible crypto assets is always maintained in Foundation wallets.
Segregation of Assets: Coinmerce Earn keeps Earn Program Crypto Assets in its own wallet(s) and separate from Coinmerce's Crypto Assets, so that these would not be affected in case Coinmerce would ever default.
Risk Management Framework: Coinmerce Earn applies a comprehensive risk management framework to mitigate risks, including evaluating borrower's creditworthiness, continuous monitoring, counterparty diversification, and establishing asset recovery procedures.
Slashing Insurance: Coinmerce Earn exclusively works with Staking validators that have slashing insurance, protecting against potential losses from network penalties.
Coinmerce Redelivery Guarantee: Coinmerce provides a guarantee for the redelivery of Crypto Assets or their monetary value in the event Coinmerce Earn is unable to do so. Please be aware there are limitations, including a guarantee cap.
Security Measures: Coinmerce employs industry-standard security protocols and requires its third-party IT service providers, counterparties, and partners to do so as well. Please be aware cyber risks remain.
It's important to remember that the Earn Program remains inherent risks, which can be significant. For more detailed information, please refer to the Risk Disclaimer Normal Account and the Earn Terms and Conditions.