You might want to refer to this particular post made by buwaytress about Nexo. This was posted just a couple of months ago, so the existing terms and conditions of the platform might still be the same until now. S/he tried it himself/herself. By the way, I took this from the last page of the thread that AdolfinWolf suggested.
So last year, I
wrote that I decided to test NEXO services with USDT. Can't believe it's been 15 months since that experiment.
Thought it could be interesting to update a number of things about this service, for those keen to learn or find out more. This is not a recommendation in any way, I'm still highly suspicious of them and you should understand from past discussions that your funds are not as protected as it appears.
Updates since the last post in July 2020:
1. Insured amount has gone up from $100M to $350M. However, this represents roughly 1% of all assets under management. In other words, if they lose everything, every customer gets about 1% back as insurance. Extremely unlikely to happen, but hey.
2. They now have real-time audit checks with a US firm so anyone can prove they are over 100% collateralized. Essentially, this just means they have more than 1:1 funds held in their accounts and on user account balances. Note, it doesn't say how much exactly this over-collateralisation is, and what happens if BTC or ETH were to drop 50% (as I suspect they would then be in trouble with those holding fiat balances.
3. Percentages have drastically reduced to roughly half of OP's title. You also get less and less from next month the more you have.
- 4% if you own less than 50k
- 3% for something like 500k
- 1% for anything above 10M
(numbers not confirmed and you get increments based on NEXO holdings as a percentage of portfolio as well)
You earn more if you choose to receive interest in their tokens. So definitely pushing more people to put in more tokens, and taking away the sting of high interest on huge savings.
What's interesting for me, though, isn't that they've:
-
reduced interest on Bitcoin and ETH for whales to 1%but that they've retained 4% for fiat.
And retained 8% for Stablecoins. This doesn't make sense to me at all. It's almost as if they see stablecoins as the... safest bet for them?
You might also want to take note that despite the 8% for stable coins retained, it may actually be lower as it is subject to change. Some are saying it is actually 6.5%.
I think it might not be worth the risk. While they are claiming it is risk-free, of course, we all know it isn't.