Legal & Security
Understanding your protection, insurance, and regulatory compliance
10% APY - Fully Insured
Your yield is protected by enterprise-grade smart contract insurance
Insurance Provider: Munich Re
Munich Re is the world's largest reinsurer with over 140 years of experience. They provide the backing for our smart contract insurance, ensuring that your funds are protected against technical risks.
- Zero rug-pull risk with regulated reinsurer backing
- Coverage for smart contract vulnerabilities
- Direct payout mechanism in case of incidents
Smart Contract Audits by Quantstamp
All yield-generating protocols are audited by Quantstamp, a leading blockchain security firm that has secured over $200B in digital asset value.
- Comprehensive security audits before deployment
- Continuous monitoring of smart contracts
- Regular re-audits for protocol updates
How the 10% Yield Works
Stable USD Yield Sources
Your USDC is deployed to vetted DeFi protocols that generate yield through lending, liquidity provision, and other low-risk strategies. These are not speculative investments but proven yield mechanisms.
Insurance Coverage
Every dollar earning yield is covered by smart contract insurance. If there's a technical failure or exploit, the insurance pays out to make you whole.
FDIC-Equivalent Protection
The combination of USDC's regulatory compliance, smart contract audits, and insurance coverage provides protection comparable to traditional FDIC insurance, but with significantly higher yields.
USDC: The Foundation of Your Account
Understanding the stability and regulation behind USD Coin
What is USDC?
USDC (USD Coin) is a fully-reserved stablecoin pegged 1:1 to the US Dollar. It's issued by Circle, a regulated financial services company, and is one of the most trusted digital dollars in the world.
Regulated & Licensed
Circle is licensed as a money transmitter in 48 US states and holds regulatory licenses globally.
Monthly Audits
Grant Thornton LLP provides monthly attestations confirming USDC is 100% backed by cash and US Treasuries.
$32B+ in Circulation
Trusted by thousands of businesses worldwide with over $32 billion USDC in circulation.
USDC Reserve Composition
Reserves held at BNY Mellon and other regulated financial institutions
Why USDC vs Traditional Banking?
- 24/7 instant global transfers
- Programmable money with smart contracts
- Full transparency with blockchain verification
- Self-custody option for complete control
Self-Custody Security Model
How we ensure your funds remain secure and in your control
Wallet Infrastructure Powered by Privy
We use Privy's secure wallet infrastructure to give you the best of both worlds: easy onboarding with enterprise-grade security. Privy uses distributed key sharding to ensure neither Privy nor 0.finance can access your keys — only you can.
Distributed Key Security
Keys are split using shamir secret sharing. No single party ever has access to your complete private key.
- Keys only reconstituted in secure enclaves
- Regular security audits
Multiple Wallet Options
Connect your existing wallet or create an embedded wallet. Support for all major wallets and chains.
- MetaMask, WalletConnect, Coinbase
- Hardware wallet compatible
Wallet Setup Options
Option 1: Connect Your Existing Wallet
Already have a MetaMask, Coinbase, or other wallet? Connect it directly. You maintain complete control of your keys as you always have. Perfect for crypto-native users.
Option 2: Privy Embedded Wallet
Create a wallet with just your email. Privy's embedded wallets use distributed key sharding - your key is split between your device, Privy's secure enclave, and a recovery method you control. Neither Privy nor 0.finance can access your funds.
Option 3: Gnosis Safe Multi-Sig
For larger organizations, set up a Gnosis Safe with multiple signers. Require 2-of-3 or custom threshold approvals for transactions. Connect via Privy for seamless access while maintaining institutional-grade security.
How Privy Protects Your Keys
Distributed Key Sharding
Your private key is split into multiple shards using Shamir's Secret Sharing. These shards are distributed across your device, Privy's secure infrastructure, and your chosen recovery method.
Secure Execution Environment
Keys are only reconstituted within secure enclaves at the moment of signing. Neither Privy nor 0.finance ever has access to your complete private key.
User-Controlled Recovery
You control your recovery methods - whether through email, SMS, or social auth. Even if you lose access to one method, you can recover your wallet securely.
Wallet Setup Options
Option 1: Full Self-Custody
You generate and control all keys. 0.finance never has access. Maximum security and control for technically sophisticated users.
Option 2: Assisted Setup
We help you set up your Safe with best practices, but you control the keys from day one. Good balance of security and convenience.
Option 3: Managed Wallet (Coming Soon)
We handle key management with enterprise-grade security. You maintain control through our interface. Easiest option with bank-like experience.
Regulatory Compliance
Operating within the legal framework while pushing boundaries
What We Are
- Software provider for self-custody wallet management
- Interface to traditional banking rails through partners
- Connector between DeFi protocols and fiat systems
- 100% legal and compliant with US regulations
What We're Not
- Not a bank (no fractional reserve banking)
- Not a custodian (you control your keys)
- Not a money transmitter (we don't hold funds)
- Not FDIC insured (but privately insured)
Important Disclosures
- • Digital assets and DeFi protocols involve risk. Past performance doesn't guarantee future results.
- • The 10% APY is variable and subject to change based on market conditions and protocol performance.
- • Insurance covers smart contract risks but not market risks or USDC depegging events.
- • Tax treatment of digital assets varies by jurisdiction. Consult your tax advisor.
- • This is not investment advice. Do your own research and understand the risks.
Frequently Asked Questions
Is this actually legal?
Yes, completely legal. Self-custody wallets are explicitly legal in the US and most jurisdictions. We operate as a software provider, not a financial institution. You're simply using technology to manage your own digital assets with banking-like features.
How is the 10% yield sustainable?
The yield comes from established DeFi protocols that have been operating for years. These include lending markets (like Aave), liquidity provision, and other yield strategies. The 10% includes the base protocol yield plus additional optimization strategies. This is sustainable because it's based on real economic activity, not speculation.
What happens if 0.finance shuts down?
Your funds remain completely safe and accessible. Since you control the keys to your wallet, you can always access your funds directly through the blockchain, even without our interface. The Gnosis Safe can be managed through their interface or any compatible wallet. This is the beauty of self-custody.
How does the insurance actually work?
The insurance is underwritten by Chainproof (backed by Munich Re) and covers smart contract failures. If a covered protocol is hacked or fails, claims are processed and paid out in USDC. The coverage is automatic - you don't need to file claims yourself. Insurance premiums are already factored into the yield you receive.
Can the government freeze my account?
Since you hold the keys, no one can freeze your wallet - not the government, not banks, not even us. However, USDC itself (like any regulated stablecoin) has freeze functions that Circle can activate under court order. This is extremely rare and only happens in cases of proven illicit activity.
What about taxes?
We provide standard transaction reports and tax documents compatible with traditional accounting software. The yield is generally treated as interest income. Converting between USDC and USD is typically not a taxable event since they're pegged 1:1. However, tax treatment varies by jurisdiction - consult your tax advisor.
Ready to take control?
Join companies earning 10% APY with full custody and insurance protection