This came in via PM today. A couple of really good questions so I'm replying here for everyone's benefit.
Hello Burnside, hope your businesses goes well
My partner just mentioned how can I get my money back, and where I have them stored, when I use your sites litecoinglobal.com and btct.co
And I looked at the FAQ and there is defined:
"What happens if all your servers are seized/stolen?
We will reimburse you as best we can. You may lose some of your coins if we go bankrupt.
The asset issuers already have all the data they need to move to another exchange.
What happens if your servers are compromised?
We will reimburse you as best we can. You may lose some of your coins if we go bankrupt.
The asset issuers already have all the data they need to move to another exchange."
It means, if I had buyed some stocks, and server is stolen, I can always make transfer to another exchange if asset issuer doesnt chicken away with our money, and have mailed who owns and how much of his stocks or bonds, in e-mail.
While at the same time, any Litecoins (at litecoinglobal.com) or Bitcoins (at btct.co) I have in my account are effectively stolen with server.
Are you in process, to make it more leggit and less scary for investors by incorporating segregated accounts? Then in case of company default, individual ownership and coins are not lost in your company and people have their money/coins protected, separated from your exchange. All brokers I use have segregated accounts which are issured by local government.
On plus side, incorporating this inovation into your exchange will guarantee leading position among exchanges, and will spark interrest of serious investors, with huge cash.
here what I mean by segregated accounts, via definition
http://www.investorwords.com/7703/segregated_account.htmlBusiness is going good. I love that the site is growing and people are able to benefit from it!
I wrote the FAQ some time ago before I had split into hot wallet / cold wallet, so I will need to update that! The way it is right now the hot wallet has under ~$1,000 equivalent coinage in it at any given time. Everything above that is withdrawn to the cold wallet, which is on a linux box at another location behind a firewall. The litecoind/bitcoind on that linux box don't run most of the time. I just spin them up when I need to send coin back to the hot wallet for a big withdrawal. With that in mind, the FAQ should likely read something like "If the server is stolen or compromised the coins lost will be a fraction of those on deposit, and if at all possible the company will reimburse whatever is stolen."
Addressing the rest of your post regarding segregated accounts. We do use segregated accounts in the *coind daemons. Though we do not use segregated wallets. Backups of both the wallet dat, and a textual dump of the balances of the accounts in the wallet are done on a regular basis.
I hope that helps make sense of things!
Cheers.