The Reality of Exchange Custody

Let's address the elephant in the room: Bitcoin exchange custody isn't free. Running commercial-grade hot and cold wallets involves substantial infrastructure costs, security measures, operational risks and ongoing maintenance. When exchanges offer "free" custody services, it's worth asking: How are they covering these costs?

The old adage rings true: "If you're not paying for it, you are the product"

This reality has led to concerning practices in the digital asset industry:

• Exchanges operating with partial reserves
• Commingling of user funds
• Hidden fees masked as "free" services
• Exploitation of idle bitcoin through lending or speculation

 

Why We Built the Bitaroo Vault

The Bitaroo Vault emerges from our commitment to transparency and security. We believe that custodial services should be:

• Verifiable
• Secure
• Fairly priced
• Optional

Our Vault system represents a paradigm shift in exchange custody. It's designed to provide institutional-grade security for users who choose to keep larger bitcoin balances with us, while maintaining complete transparency about the associated costs and benefits.

 

How the Bitaroo Vault Works

The Bitaroo Vault automatically activates for dormant accounts holding 0.1 BTC or more. Here's what you need to know:

 

Automatic Lock Feature

• Triggers after one month of inactivity
• Applies to balances of 0.1 BTC and above
• Users receive a 1-week email notice before auto-lock
• Provides enhanced security
• Significantly reduces the risk of exchange hacks

 

Opting Out of the Bitaroo Vault is Easy

Any of these monthly activities will prevent Vault activation:

• Exchanging AUD/BTC (buying or selling)
• Withdrawing (any amount)
• Depositing (any amount)
• Paying BPAY bills
• Buying a Visa card
• DCA (Dollar Cost Averaging) purchases

Even a minimal action, such as a single satoshi Lightning Network transaction, is sufficient to maintain regular account status.

 

The Security Advantage

The Bitaroo Vault is not just another storage solution – it is a comprehensive security framework that offers:

• Advanced multi-signature protection
• Regular proof-of-reserve attestations
• Segregated user funds
• Third-party auditing
• Enhanced withdrawal procedures

 

Our Commitment to Self-Custody

While we are proud of the Bitaroo Vault's security features, we remain staunch advocates of self-custody. We continue to support users who prefer to control their own keys through:

• Instant, low-cost withdrawals
• Batch withdrawal options
• Lightning Network integration
• Guardian multi-sig solution
• Educational resources about self-custody

 

Transparency in Action

The Bitaroo Vault represents our commitment to operational transparency. We believe users deserve to understand:

• How their funds are stored
• What security measures protect them
• The real costs of custody
• Their options for fund management

 

Your Choice Matters

The Bitaroo Vault is designed to enhance security while respecting user autonomy. You can:

• Opt out at any time through regular account activity
• Choose between self-custody and exchange custody
• Maintain flexibility with your trading strategy
• Access your funds whenever needed

 

Looking Forward

The Bitaroo Vault is more than a security feature – it is a statement about our values. We believe in:

• Transparent operations
• Fair pricing
• User autonomy
• Proactive security

As the Bitcoin ecosystem evolves, we will continue to innovate while maintaining these core principles. The Vault is just one step in our ongoing mission to provide the most secure, transparent, and user-focused Bitcoin exchange service in Australia.

Your trust is our most valuable asset, and the Bitaroo Vault is our way of honouring that trust through action rather than words.

For more information about the Bitaroo Vault or to learn about our security practices, please visit our security page or contact our support team.