First of all we use a complex of cold storage solutions - this means that the majority of cryptocurrencies kept with us are kept offline and are unreachable to hackers. This makes the storage of the cryptocurrencies resilient to attacks and reasonably safe from our side.
Second security solution is a delay to withdraw funds from our clients' accounts. This means that if your computer gets infected with malware and you lose your credentials to a hacker who will try to withdraw money - we will send you a notification about an ongoing withdrawal and you will have 1-48 hours to stop the transaction from happening. This makes the storage of the cryptocurrencies resilient to trojans, malware and adds additional safety from the client's side.
Apart from these 2 fundamental security solutions we are running a monitoring system to prevent fraud and illegal activities.
In case of suspected theft we have an emergency contact system through which we communicate with our clients and immediately resolve the situation.
Risk disclosure
Kaiserex as a premium exchange looks for the best price/risk ratio to buy or sell cryptocurrencies in the market. We have partnerships with dozens of exchanges and individuals. When you want to buy or sell a cryptocurrency we usually have to send your money to an exchange which is suppose to be reliable and has the best price. Since we are forced to rely on other exchanges we can not take responsibility for their actions and conduct.
During our operations we do strict due diligence on exchanges and try to keep money with them for very short periods of time. However our business nature forces us to use other companies which we have no control of and we have to hold part of our clients’ money with them.
In the event of an exchange hack/theft, all Kaiserex clients will share the loss proportionally to their balance.
For example: if Kaiserex in total holds 10 BTC, 9 BTC are on a cold storage and 1 BTC is on an exchange which gets hacked and loses 1 BTC. Every Kaiserex client will lose 10% BTC and they will have a new BTC-claim coin which might or might not get recovered if the hacked exchange manages to pay back.
We will provide proof of missing money and assist in legal action to try to recover missing money, but we will not reimburse or pay for any losses incurred.
This solution has been made to incentivize our clients to hold their cryptocurrencies on their own cold storages and minimize operational Kaiserex risk.
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