Save is not FDIC insured, therefore not zero-risk. However, there are measures we take that seek to protect your funds:
Coverage Protection: Our lending partners enter funds into loans that are overcollateralized by over 125%. This seeks to protect your principal and interest earned in case of borrower default. If the value of the collateral falls, borrowers are margin called and required to top up or repay part of their loan. If not, they are automatically liquidated, which protects your principal.
Diversification: To power this lending service, we partner with regulated US custodians Wyre, Genesis, and Abra both directly and indirectly, as well as US fintech Synapse. These prime brokers and institutions seek to protect against the risk of partner failure. In evaluating partners for Save, we performed due diligence to ensure balance sheet strength for added security.
Custody Protection: Your funds are securely lent to prime brokers and lenders who manage over $10 billion in digital assets via our wallet partner, Fireblocks, which stores over $400 billion in digital assets.
Fully Backed Stablecoins: USDC is fully backed by dollar reserves. Since its inception in 2018, USDC’s issuer Circle has conducted regular audits, published monthly attestations and weekly reserves breakdowns, and is fully regulated by the NY Department of Financial Services. Circle’s last two audits, for 2020 and 2021, have been published as part of Circle’s SEC filings as they prepare to become a listed public company on the New York Stock Exchange.
Data Security: We encrypt user data using the AES-256 standard. The AES-256 is bank-grade encryption and the industry standard for protecting data.
Account Protection: All accounts are protected with a PIN number and two-factor authentication (2FA).
People also ask: How safe is Save? How secure is Save? How are my funds protected on Save?