Last Updated on January 29, 2025 by Olga
At CoinRabbit, the security of our clients’ funds is at the core of everything we do. As a crypto lending platform, we recognize the importance of maintaining a reliable and secure environment for our users in the ever-changing landscape of digital finance.
While we focus on providing a fast and straightforward lending experience, ensuring the safety of assets remains a key aspect of our operations. In this article, we’ll provide a closer look at the measures we take to safeguard funds.
We’ll cover the different layers of security at CoinRabbit, the tools and practices we use, and the overall approach we take to ensure a secure experience for our users. Let’s dive into the details.
How CoinRabbit’s Risk Control System Safeguards Your Transactions
At CoinRabbit, the security of every transaction is a top priority. To achieve this, we’ve developed a comprehensive Risk Control System that operates through several key mechanisms designed to monitor, validate, and protect all system operations. Here’s how it works:
- Blockchain Hash Verification
Every incoming transaction is verified through its unique hash on the blockchain. This step ensures that the transaction is legitimate, tamper-proof, and properly recorded. - Mathematical and Economic Integrity Checks
The second mechanism performs detailed calculations, confirming that all transactions and balances are accurate down to the smallest decimal. This layer ensures that the platform’s economic data remains consistent and reliable. - Data Validation and Alert System
Once transactions pass the previous checks, the third mechanism validates the data and signs it. If any discrepancy, such as a hash sum divergence, is detected, the system immediately triggers an alert to address potential issues. - Emergency Lock and Notification Protocol
The final mechanism is a safety net for critical situations. If an irregularity is identified, the system automatically halts all operations, preventing further transactions. Simultaneously, core team members are notified so the issue can be investigated and resolved promptly.
This multi-step Risk Control System is a proprietary solution that works tirelessly in the background to secure every transaction, offering clients peace of mind as they interact with the platform.
Additional Security Layers to Prevent Fraudulent Activity
On top of the Risk Control System, we’ve implemented additional measures to counteract any suspicious or unauthorized activity:
- Unique Safe Address Generation
Instead of sending funds directly to a destination address, each transaction is processed through a unique, secure address. This step adds an extra layer of scrutiny and keeps transactions traceable and secure. - AML and Blacklist Screening
Pending transactions undergo rigorous checks to ensure they are legitimate. These include Anti-Money Laundering (AML) compliance and a blacklist screening to filter out flagged or suspicious wallet addresses. The blacklist is regularly updated to reflect the latest security intelligence. - KYC When Necessary
While we believe in the core principle of cryptocurrencies—providing fast, easy access to financial operations—safety comes first. Passing KYC (Know Your Customer) verification is optional for most users, but if a transaction, wallet address, or related information appears suspicious, KYC is required to ensure the integrity of the platform.
Cold Wallet Storage for Maximum Fund Security
To keep clients’ funds safe, CoinRabbit utilizes a cold wallet system. Here’s how it works:
- Limited Access
Cold wallets are stored offline and can only be accessed by a small group of authorized team members. This significantly reduces the risk of external breaches. - Approval-Based Transactions
Any operation involving cold wallets must be approved by all authorized team members, ensuring accountability and minimizing the risk of misuse. - Seamless Withdrawals
While most funds are securely stored offline, a portion is kept readily available to ensure clients can withdraw their assets without delay. This strikes the perfect balance between security and accessibility.
24/7 Customer Support: Your Security Net
Even with all these advanced security measures in place, CoinRabbit understands that sometimes users may need extra assistance. That’s why our dedicated customer support team is available around the clock. Whether it’s a technical issue, a question about a transaction, or an emergency, we’re here to help—morning, night, or any time in between.
Crypto Backed Loans
When it comes to crypto backed loans, it should be noted that all the loans on CoinRabbit are backed by other cryptocurrencies which stand out as collaterals. By that we mean that all the clients, who have decided to take a loan, have to leave their crypto asset as a collateral.
Working with Binance Directly
We use the services of the largest cryptocurrency exchange Binance for the initial temporary cryptocurrency storage. Though the funds are being kept there only for a limited amount of time it is essential to work with the projects who already have earned its trust in the market and cryptocurrency sphere.
Protected High-Yield Passive Income
The essential part of our work is that all the loans we provide are backed by the collaterals. It is not a financial pyramid, and we do not provide cryptocurrency backed by a “thin air” or any other sort of “miracles”. Easy as that — one collateral backs one loan given out. It makes the whole system stable and rock-solid and protects the terms, APR (annual percentage rate) and other conditions of CoinRabbit loans from being changed on a daily basis.
The CoinRabbit team is constantly focused on providing our clients with the best possible security of our services and solutions. While keeping in mind our main distinctive features such as speed and ease it is our main goal to remain one of the most secure crypto lending services on the market.