Custody Policy for Customers

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Fipto PI SAS ("Fipto") offers its Customers a third-party custody service for crypto-assets as defined in Article 3 of the MiCA Regulation and is committed to complying with regulatory requirements regarding the custody of its Customers' crypto-assets.

This custody policy is a summary of Fipto's internal policy. It is an integral part of Fipto's General Terms and Conditions ("GTC"). Words capitalized in this document have the definition given to them in the GTC.

Description of the Custody Service 

Operation

By subscribing to Fipto's Services, under the conditions described in the GTC, Customers can:

  • Transfer crypto-assets from an External Wallet to their Internal Wallet;
  • Withdraw crypto-assets from their Internal Wallet to an External Wallet; and
  • Store crypto-assets purchased or converted through the Platform on their Internal Wallet.

For a deposit of crypto-assets from an External Wallet, the Customer can view the public address linked to their Internal Wallet directly from their Account to proceed with the deposit of their crypto-assets.

In the case of a withdrawal to an External Wallet, the Customer must (i) register the beneficiary's information (External Wallet public address) and (ii) validate this addition using the 2FA method.

The Customer is solely responsible for adding an address to the Platform, and it is their responsibility to verify that it corresponds to the intended recipient.

Service Provider

Fipto uses the technical service provider Fireblocks to ensure the technical infrastructure of the Internal Wallets. Fireblocks offers services for digital wallet creation, public or private key custody, direct interaction with blockchains, deposit, withdrawal and payment in crypto-assets, and portfolio balance tracking (https://www.fireblocks.com/).

Fipto acts as an intermediary between its Customers and the infrastructures offered by Fireblocks and permanently retains the means of access to its Customers' crypto-assets.

Restitution of Assets

Customers expressly authorize Fipto to manage the crypto-assets held in their Internal Wallet, throughout the custody period, to execute the obligations provided for by the GTC.

Fipto will under no circumstances use the Customers' crypto-assets and the rights attached to them without their express authorization.

Fipto retains the Customers' crypto-assets in their Internal Wallet until they expressly request their return or until the termination of the GTC.

In case of a request for restitution or termination of the GTC, Fipto will transfer the crypto-assets to the External Wallet identified by the Customer or convert the crypto-assets into Euros to transfer them to the Customer's bank account, at the Customer's discretion.

Fipto will return the funds as soon as possible, except in cases where Fipto is not responsible, such as when:

  • The Customer's Account has been blocked, suspended, or closed for reasons related to Fipto's obligations regarding AML-CFT;
  • Fipto must carry out verifications, particularly related to AML-CFT obligations;
  • A competent authority refuses the restitution;
  • An event independent of Fipto's operations occurs, such as a problem inherent in the functioning of the blockchain or the underlying smart contract;
  • The Customer makes an error when communicating a public key for the purpose of restitution.

In this case, the delay in the restitution of the Customer's crypto-assets will not give rise to any compensation.

Shared Electronic Record-Keeping System Bifurcation

In the event of a shared electronic record-keeping system bifurcation (Fork), the Customer is deemed to be entitled to the crypto-assets resulting from the bifurcation up to their position at the time the event occurred.

If Fireblocks decides to support the new blockchain within its environment, Fipto will be able to directly pass on the changes within its system. The Customer will therefore be able to view and interact directly with the newly available crypto-assets.

Conversely, if Fireblocks does not support this new system, Fipto will not be able to allow Customers to view and interact directly with the crypto-assets resulting from the bifurcation on the Platform. However, Fipto will be able to return the newly created assets to Customers, upon request, on an External Wallet.

Customer Information

Fipto communicates to Customers, once per quarter and upon each request from them, a statement of position of the crypto-assets accounted for in their name. The statement mentions the crypto-assets concerned, their balance, their value, and the movements carried out.

For this:

  • Fipto provides Customers, on a quarterly basis, within the Account, with a summary of the assets accounted for in the Customer's name. The Customer will be notified by email of the availability of this file.
  • Furthermore, the Customer can, at any time, download the entirety of the Transactions carried out on a durable medium from the Platform.

Suspension of Services

In the event of temporary suspension of the Services, Fipto will inform Customers by email as soon as possible. Access to the Platform may be deactivated, impacting the Customers' ability to view their balance and/or initiate a Transaction.

Once the issue is resolved, Fipto will restore access to Customers who will be able to view the available balance and carry out Transactions again.

Finally, in the event of lasting unavailability of the Services directly linked to a suspension of Fireblocks' services, Fipto will inform its Customers by email as soon as possible. Fipto may deactivate access to the Platform to switch to another technical service provider to restore the Services. In this case, the Customers' crypto-assets will be transferred to the new technical service provider and Fipto will communicate the new public addresses to the Customers when the Services are reopened.

Security of Crypto-Assets

Fipto has implemented an appropriate organization to minimize the risk of loss of the Customer's crypto-assets or the rights related to these crypto-assets, due to abuse or fraud of these crypto-assets, deficient administration, erroneous recording, or negligence. In addition, to prevent any incident that could occur to the stored crypto-assets, Fipto has implemented a set of security measures provided by Fireblocks. Further information on the Fipto custody policy may be requested by the Customer.

Responsibilities

Fipto is entirely responsible for any default or failure of Fireblocks affecting the Customer's Internal Wallet and undertakes to compensate the Customer for any resulting damage.

Fipto is not responsible for losses, damages, or consequences, financial or otherwise, caused by an event, non-compliant or unauthorized use of the Internal Wallet and Account identifiers.

As indicated above, Fipto is not responsible for losses, damages, or consequences, financial or otherwise, caused by the impossibility or delay in the restitution of crypto-assets due to an event not attributable to Fipto.

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