Statement on Launching Huobi Security Reserve
In January 2018, Huobi the launched Investor Protection Fund (20% of Huobi’s income goes to buyback. All repurchased HTs are stored in Huobi User Protection Fund). This decision gained widespread support from users. Today, Huobi Global officially launches another users protection mechanism——Security Reserve Mechanism, providing greater asset protection for our users globally.
Huobi Global continues to take asset security seriously and strictly separates users’ digital assets in cold and hot wallet, storing most of digital assets in multi-signature cold wallet. After a few years of development, the size of Huobi Global’s own assets have grown beyond assets stored in the hot wallets of our platform. So we decide to implement the following user protection mechanism:
1. Establish Huobi Security Reserve with a total amount of 20,000 BTC. This reserve is owned by our platform, stored in an independent address and is used to cope with extreme security accidents.
2. With the exception of losses incurred as a result of users' own actions, Huobi Global will pay compensation upfront for losses arising from all other security incidents. The compensation comes from this reserve.
February 5, 2018