YAX (Hong Kong) Limited, as a compliant virtual asset exchange, is committed to safeguarding our customers’ assets. In partnership with One Degree, a trusted insurance provider specialising in digital asset protection, we have established a comprehensive Virtual Assets Custody insurance arrangement for our clients. This collaboration allows us to offer robust coverage against risks such as theft, hacking, cybersecurity breaches, and third-party liabilities. Our insurance policies have been carefully tailored through rigorous risk assessment to address the unique challenges of the cryptocurrency ecosystem.
Coverage Areas:
Coverage Details: If, during the Policy Period, the Digital Assets of Asset Owner(s) are discovered to have become unrecoverable as a direct result of:
(1) Theft or physical loss, damage, or destruction caused by robbery, burglary, fire, lightning, explosion, windstorm, volcanic action, typhoon, flood, earthquake, sprinkler leakage, and/or water damage, while the respective Secret Keys are stored within the offline Vault and Designated Premises Location(s) (“Designated Premises Breach or Damage”).
(2) Theft by means of a malicious act or fraud committed by any identifiable Employee(s) of the Insured, acting alone or in collusion with others (“Employee Fraud”).
(3) Theft by means of any failure, breach, compromise, or violation of the security of the Insured’s Computer System conducted by a person not employed by the Insured or working on the Insured’s behalf (“Third Party Computer Crime”).
(4) Theft by means of any failure, breach, compromise, or violation of the security of the External Wallet Tech Service Provider(s) conducted by a person not employed by the Insured or working on the Insured’s behalf (“Compromise of External Wallet Tech Service Provider”).
YAX strives to compensate users in the event of a covered security incident. However, it is important to note that there is a possibility that losses may exceed insurance recoveries, which could put user funds at risk. While we continuously review and update our insurance policies to align with industry best practices, it is essential for users to understand that certain limitations, exclusions, and deductibles may apply. Please be aware that personal accounts with unauthorised access or non-fungible tokens are not covered. It is the responsibility of all users to maintain strong passwords and control their login credentials.
Please note that the description provided above is a high-level summary of the coverage policy. For detailed information, reference should always be made to the custodial insurance policy with the insurer. All wordings and final interpretations shall be based on the English version of the policy to ensure clarity and legal accuracy.