Your assets deserve more than a promise. Every layer of Ndax is designed to keep your assets protected and your confidence intact.
Every Layer Counts
Client digital assets are maintained separately from Ndax's own assets. Assets are held with an acceptable custodian in accordance with the Custody Disclosure Statement and are kept separate from Ndax, its affiliates, and the custodians' other clients.
A majority of client digital assets are held with acceptable third-party custodians, with at least 80% of client crypto assets held in segregated omnibus accounts in the name of Ndax in trust for or for the benefit of Ndax’s clients.
Ndax uses a combination of cold, warm, and hot wallet infrastructure to support asset custody, trading, deposits, withdrawals, and settlement. Cold storage is used for the majority of client assets.
Ndax is not permitted to pledge, re-hypothecate, or otherwise use client crypto assets, except where a client has directed Ndax to use eligible assets for staking services.
Client assets used for staking are held separately from non-staked client assets and remain in the possession, custody, and control of Ndax at all times.
On a monthly basis, Ndax confirms that client assets held with custodians and within Ndax-controlled wallets reconcile with Ndax's books and records. Custody providers are reviewed on an ongoing basis.
Ndax's custodians are regulated as trust companies across Canadian and U.S. jurisdictions, including oversight by provincial and state financial regulators. Ndax verifies regulatory status as part of its ongoing custodian due diligence.
Each custodian maintains its own insurance coverage for digital assets held in cold storage. Ndax reviews custodian insurance policies as part of its due diligence process and assesses whether coverage levels are appropriate relative to assets held.
Each custodian is required to fulfill their reporting and audit obligations. Ndax reviews these reports as part of its custodian due diligence to assess controls, security, and operational readiness.
Assets held with each custodian are maintained in segregated omnibus accounts in the name of Ndax, in trust for or for the benefit of Ndax's clients, held separately from Ndax's own assets, its affiliates, and the custodians' other clients.
Each custodian is required to be functionally independent of Ndax. Ndax conducts due diligence to confirm that custodians meet applicable independence criteria before engaging them to hold client assets.
Ndax maintains ongoing oversight of its custodians, including reviews of custody policies and procedures, insurance coverage, regulatory status, audited financial statements, and audit reports. Ndax is required to notify regulators at least 10 days before any change of a custodian.
Ndax provides multiple layers of insurance coverage for assets held directly by Ndax and with acceptable third-party custody service providers. This includes protection against fraud, internal theft, and HSM-related (Hardware Security Module) operational failures. Collectively, these policies help safeguard client assets against various risks and certain operational incidents involving digital asset custody.
Ndax maintains a Crime and Financial Institution Bond (FIB) that provides coverage for certain losses involving crypto assets held in Ndax's hot, warm, and cold wallet infrastructure, subject to the terms and limits of the applicable policy.
Ndax's third-party custodians each maintain substantial insurance coverage for digital assets held in custody. Ndax reviews custodian insurance coverage as part of its ongoing due diligence process.
Ndax reviews its insurance coverage regularly and maintains oversight processes to assess whether coverage remains aligned with regulatory requirements, business operations, and custody risk considerations.
Ndax uses multi-signature and approval controls as part of its asset custody framework, requiring multiple approvals before certain wallet movements or transactions can be completed.
All Ndax personnel are required to pass background checks, including criminal records and credit checks. Employees are required to understand applicable policies and procedures, with regular training designed to reinforce security awareness, compliance obligations, and risk identification.
Ndax maintains monitoring and supervisory processes designed to identify unusual activity, operational issues, and potential security or compliance risks, supporting timely review, escalation, and documentation.
Ndax conducts due diligence and ongoing reviews of key service providers, including custodial, wallet infrastructure, technology, and outsourced providers, covering controls, audit reports, insurance, regulatory status, and business continuity planning.
Ndax regularly tests controls and procedures to identify potential weaknesses and improve operational resilience, including penetration testing, vulnerability assessments, and process reviews designed to safeguard systems and client assets.
Ndax maintains business continuity and disaster recovery plans designed to support continued operations during significant disruptions. These plans and related service provider arrangements are reviewed and tested to support operational readiness and recovery.