Replies to post #55781 on MedWellAI Inc (MWAI)

[ap17]

THIS:

By implementing Ledger Vault’s solutions Nexo’s total insurance portfolio now amounts to 375 000 000 USD. The Vault insures digital assets for up to $150 million through a customized insurance program backed by Arch and Marsh. This upgrade is a part of Nexo’s broader plan to increase our insurance to over $1B in 2021 via a syndicate of leading insurers (details can be found here).

The safety of clients funds is the main priority for Nexo. Cold storage Wallets are provided by BitGo, the leader in digital asset financial services. BitGo Custody carries $100,000,000.00 in insurance protections through a syndicate of underwriters through the Lloyd's, the world’s specialist insurance and reinsurance market. And this premium service comes in at no additional cost (details can be found here and here).

The $100 million policy covers digital assets where the private keys are held 100% by BitGo in the event of:

Third-party hacks, copying, or theft of private keys
Insider theft or dishonest acts by BitGo employees or executives
Loss of keys
Nexo has chosen BitGo as its custodian because BitGo provides 100% cold storage technology in bank-grade Class III vaults and the BitGo platform is SOC 2 Type 2 certified. Advanced authentication mechanisms are employed to ensure the authenticity of data, and assets are distributed geographically and organisationally.

It is the account holders’ responsibility to safeguard their accounts by means including but not limited to using a strong password, enabling two-factor authentication and controlling all login credentials to Nexo. Clients remain owners of the crypto assets placed into Nexo accounts.



To learn more please visit: https://nexo.io/security

[ap17]

An excellent explanation on NEXO insurance on Reddit:

3 months ago by "gate0000", reddit.
Let me try to unpack this:

Does the insurance cover my assets if Nexo goes belly up? - No, the insurance(provided by Lloyds) is meant to protect your assets if there is a hack

OK, then, so what kind of protection I get for my assets? - this is the more interesting question. In the traditional finance world a bank collects deposits from the public and uses those funds to lend to people and businesses. In majority of cases, the credit extended is unsecured, meaning there is nothing guaranteeing the principal if the borrower defaults. In this connection, banks perform underwriting on the consumer or the business to assess their creditworthiness. Let’s take a case where the majority of the bank customers default on their obligations. This might lead to a insolvency event and the bank might fold. This is where the regulator steps in and guarantees the deposits of the public up to a certain amount. Sure, the bank might have done asset backed lending, think mortgages and auto loans, however, those are also not 100% liquid. This means that the bank might end up selling their portfolio for 80cents on the dollar. Enter Nexo - they also extend credit to the public - both consumers and businesses. However, the main difference is that all their loans are 100% collaterized. This means that even if the borrow defaults, they have in control the collateral which they can immediately liquidate to guarantee the principal of the depositors. Basically, it is risk free for them and they don’t have the use cases where the borrower defaults and they are left holding the debt. I personally trust Nexo most with my assets due to the events of 12/13 of March. They liquidated the assets of a significant number of people to protect the principal of the depositors. The competition did not do a single liquidation which was a big red flag for me. Are your funds 100% protected? - No. Does the business model insure that your principal is protected? - Yes, and this is what matter to me.