Custody failure
Custody risk lies in the ability of whoever holds or controls the assets to preserve them and return them. Loss of keys, improper use of access or process failures can compromise that ability.
O alcance de cada cobertura depende das condições expressas no contrato.
How it happens
- A third party controls the keys or the mechanisms needed to move the assets in its custody.
- An exposed key, an improper authorisation or a process failure can compromise that control.
- The consequence may appear as an unauthorised movement or as difficulty in obtaining restitution. A halt in withdrawals requires the cause to be established, and does not by itself prove a definitive loss.
An example, with no proper name
Consider three signatories who depend on the same device or recovery process. Even where there are several signatures, a compromise of that common point can reach more than one key. The example shows why the number of signatories has to be read together with the independence of the controls.
The example describes the mechanism, not a real incident. Concrete cases in this segment belong to the people who lived them, and presenting them here would suggest an involvement that did not happen.
What the impact is
Unavailability or loss may reach some or all of the assets under that arrangement. Whether recovery is possible, and within what time, depends on the incident and on the conditions for restitution, with no guaranteed outcome.
What reduces the exposure
- Compare the responsibilities of self-custody and of third-party custody, including access, recovery and continuity. Each arrangement requires different controls and different knowledge.
- Ask for a description of who operates the keys, who approves movements and how access is recovered. Check for points of common dependence among the signatories.
- When consulting evidence of reserves, identify the author, the date and the scope. Consider the service's obligations and its conditions for restitution separately.
What a claim in this family needs to prove
- Evidence of the position in custody before the event.
- The custodian's official communication about the halt or the compromise.
- The protected address declared at purchase, when the custody is addressable.
The exact requirement is the one in the published version of the purchased coverage contract. This list is what is usually necessary in this family.
Covers in this family
What the operator has already published for Custody failure.
No cover in this family has been published yet. The risk is still recognised by the product. What does not exist yet is the corresponding offer.
FINOVEX Capital Protection
If it happens, this is the process.
See the steps for submission, review and decision. Decisions to approve, deny or pay require a second authorized person, and the process is recorded.
Consulting this site does not create cover. Protection applies to the covered events and to the conditions of the collective policy.