Security is our top priority. We've built multiple layers of protection to keep your savings safe while maintaining the flexibility and returns you deserve. Here's exactly how we protect your money.
Unlike traditional banks where the institution controls your funds, you maintain ultimate ownership through cryptographic keys. We simplify the complexity while ensuring you're always in control.
All sensitive data is protected with AES-256 encryption—the same standard used by banks and government agencies. Your information is encrypted both in transit and at rest.
Our smart contracts and infrastructure undergo regular third-party security audits by leading firms. We publish audit reports for full transparency.
We believe in radical transparency. You can verify exactly where your funds are allocated and how returns are generated at any time.
We believe in honest disclosure. While we've implemented extensive security measures, it's important to understand the risks involved with any financial product.
Paxify is not a bank, and your funds are not covered by FDIC insurance. Traditional bank accounts are insured up to $250,000 per depositor. Paxify accounts do not have this government-backed insurance.
The ~5% APY is a target, not a guarantee. Returns are variable and depend on market conditions. Your actual returns may be higher or lower. Past performance does not guarantee future results.
While our smart contracts are audited, there's always a risk of undiscovered vulnerabilities. We maintain insurance coverage and continuously monitor for threats, but no system is 100% risk-free.
While we aim for instant withdrawals, in extreme market conditions, withdrawals may be delayed up to 24 hours (T+1) or longer. We maintain liquidity reserves to minimize this risk.
The regulatory environment for digital financial services is evolving. Changes in regulations could impact how Paxify operates or the services we can offer in certain jurisdictions.
We take a conservative approach to managing these risks:
| Feature | Paxify | Traditional Bank |
|---|---|---|
| FDIC Insurance | ✗ No | ✓ Yes ($250K) |
| You Control Your Funds | ✓ Yes | ✗ No |
| Withdrawal Access if Company Fails | ✓ Always | ✗ Delayed |
| Transparent Fund Allocation | ✓ Real-time | ✗ Opaque |
| Counterparty Risk | ✓ Minimal | ✗ Bank Dependent |
| Smart Contract Risk | ✗ Yes | ✓ No |
| Rate Guarantee | ✗ Variable | ✓ Fixed (low) |
The Bottom Line: Paxify and traditional banks have different risk profiles. Traditional banks offer FDIC insurance but give you less control and transparency. Paxify gives you ownership and higher returns but without government insurance. Choose based on your risk tolerance and financial goals.
We maintain insurance coverage for smart contract exploits and security breaches. Additionally, because you control your funds through assisted self-custody, a hack of Paxify's infrastructure wouldn't give attackers access to your money—they'd need your private keys.
We can temporarily restrict access if we detect suspicious activity to protect your account. However, because you ultimately control your funds through self-custody, you can always withdraw your money even if we freeze your Paxify account interface.
It depends on your definition of "safe." Traditional banks offer FDIC insurance up to $250K, which protects against bank failure. Paxify offers self-custody, which protects against company failure and gives you more control. Both have trade-offs. For amounts under $250K where you prioritize government insurance, traditional banks may be safer. For larger amounts or if you value control and transparency, Paxify may be preferable.
We use assisted self-custody with recovery mechanisms. You'll set up multiple recovery methods during signup (email, phone, recovery contacts). If you lose access, you can recover your account through these methods. However, if you lose all recovery methods, we cannot recover your funds—this is the trade-off of true ownership.
Fair question. Here's how you can verify: (1) Our smart contracts are open-source and audited—you can review them yourself. (2) You control your funds through self-custody—we can't run away with your money. (3) We publish monthly transparency reports showing exactly where funds are allocated. (4) Our team is public and accountable. (5) We're building for the long term with proper legal structure and compliance.
We're committed to transparency. If you have questions about how we keep your money safe, we're here to answer them.