Crypto Exchange Terms Scanner

Crypto Exchange Provisions I Check First

FTX showed what happens when exchanges fail. Know your rights before depositing.

High Risk

Most exchanges hold your crypto as custodians. In bankruptcy, you're an unsecured creditor—you may lose everything. "Not your keys, not your coins."

Look for: "Custodial services" or "title to digital assets remains with [exchange]."

High Risk

Exchanges can freeze your account for "suspicious activity" or compliance review. No warning, no timeline, limited recourse.

Look for: "Suspend or restrict access at sole discretion" or "pending investigation."

High Risk

Daily/monthly withdrawal limits, "cooling off" periods, or temporary halts during market volatility can trap your funds when you need them most.

Look for: "Withdrawal limits" or "may pause withdrawals during extreme conditions."

High Risk

Staked crypto may be locked for months. Rewards can change without notice. You may lose staked assets if validators are penalized (slashing).

Look for: "Unbonding period" or "staking rewards subject to change" or "slashing risk."

Medium Risk

Unlike bank deposits or brokerage accounts, crypto holdings have NO government insurance. Cash held may or may not be insured.

Look for: "Not insured by FDIC" or "not protected by SIPC."

Medium Risk

Exchanges can delist tokens with short notice, forcing you to sell or withdraw quickly—often at depressed prices.

Look for: "May remove assets at any time" or "delisting notice period."