How Insurance and Custody Keep Your Funds Safe With Elitium

Elitium
Elitium
Published in
4 min readMar 11, 2021

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Elitium is on a mission to make your crypto wealth feel as secure with us as if it were sitting at a bank. That’s no easy feat, given the industry we work in. The first question clients ask often revolves around risk.

But, as with any wealth management platform, security is of utmost importance. Your peace of mind is our top priority. That’s why we work day and night to find state-of-the-art solutions that will keep your funds safe.

And today, we’re diving into both sides of the security coin, illustrating numerous measures we’ve already taken.

First, let’s focus on insurance.

A Matrix of Solutions Cover Funds Held With Elitium

Given that blockchain is a young industry, one not without risk, it’s always beneficial to have multiple layers of protection. That’s why Elitium works with several insurance providers to safeguard your funds.

Nexus Mutual

First up, Nexus Mutual provides coverage against smart contract failures, like those seen with ‘The DAO hack’ and the ‘Parity multi-signature wallet’ issues.

Nexus itself is run entirely by its members: only they can decide which claims are valid, with decisions recorded and enforced by smart contracts on the Ethereum blockchain. Payments are also driven by token incentives, eliminating reliance on an actual insurance company.

While the policy ensures that if our platform suffers a hack or otherwise compromises your funds, we can retrieve them via Nexus.

And you can have total confidence in the mutual model for several reasons:

  1. Claims happen remotely using publicly available data
  2. Fixed coverage means claims require a simple ‘yes/no’
  3. Pricing is automated, enabling cover without manual underwriting

InSure

Secondly, Elitium works with inSure to provide a higher degree of portfolio stability, protecting clients from scams, stolen funds, and drastic devaluations that would threaten the value of your crypto portfolio.

Suppose an adverse or malicious event was to undermine an investment. In such an instance, the Sure ERC-20 token gives Elitium and our clients a reliable fallback, meaning you can avoid the risk of unexpected volatility destroying your balance overnight.

Union Insurance

A final insurance solution within our investment ecosystem comes from Union: a platform offering full-stack protection to reduce the overall costs and risks associated with DeFi.

Union enables Elitium to buy tailored protection on our client’s behalf, meaning composable risks like layer-1, smart contract exposure, and transaction completion issues are no longer a threat to your portfolio.

By adding Union to the Elitium insurance matrix, we know we protect against most eventualities, but we’d prefer to avoid ever needing to rely on insurance.

Which is why we work with an industry-leading custody provider.

AMDAX: Secure Custody On Our Client’s Behalf

AMDAX is a Bitcoin and digital wealth manager based in The Netherlands.

The company is the first crypto service provider and asset manager regulated by the De Nederlandsche Bank. The oversight brings them in line with current directives, allowing them to legally process transactions and store cryptocurrencies on investors’ behalf.

AMDAX acting as the official custodian of Elitium is of considerable benefit to clients: the partnership ensures that all digital asset trading and storage is facilitated by a recognized entity that complies with the 5AMLD regulation.

In a world where regulation is ever-evolving, this gives clients significant peace of mind — while the partnership underpins Elitium’s mission to guarantee secure, trustworthy crypto services at every level.

Of equal importance, top-level compliance opens the door to institutional investors using our wealth management platform.

But the security efforts don’t end there.

3 More Ways Elitium Protects Client Funds

Reliable insurance and robust custody are of fundamental importance in crypto. However, you can only have faith in a platform if the company running it has operating policies like those we use at Elitium.

1. In-house Technology

If you invest directly in a DeFi protocol (say, Compound), you risk losing your funds through a smart contract failure. In contrast, if you manage your crypto wealth with Elitium, you get the benefit of an independent technology stack that uses in-house smart contracts.

We lock your assets in Elitium-specific DeFi pools, protecting you from hacks, price manipulation, and smart contract failures, with insurance to back everything up.

2. Extensive Due Diligence

We recognize that Elitium can’t cover all bases. Which is why we partner with firms like AMDAX. But when we use a third party, we always run extensive due diligence to ensure each partner has a proven model and a healthy track record.

That way, our products and services will always meet your expectations — and you can have full confidence in every aspect of our platform.

3. Best Practice Policies

Finally, we double-down by implementing rigorous internal protocols. Two-factor authentication, anti-phishing codes, and address whitelists add layers of client security. State-of-the-art cold wallet infrastructure keeps funds secure.

And strict internal permissions ensure only specific staff can see sensitive data, while if a client has a concern, a telephone hotline offers on-demand support.

Security You Can Bank On

Mass adoption of cryptocurrency can only happen if the industry offers solutions that are as reliable and secure as any bank.

Elitium ensures this by providing custody and insurance, delivering a crypto wealth management platform that’s at least as secure, if not more so, than most banks. After all, we recognize our clients put a lot of trust in us by managing their crypto wealth on our platform.

We must repay this by ensuring client funds benefit from the blockchain while remaining entirely insulated from the sector’s inherent risks.

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Experience smarter crypto wealth management: test the Elitium App preview, or join us on Telegram to hear when we launch.

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Elitium
Elitium

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