Custodial Wallet Disclosure

What is a Custodial Wallet?

A custodial wallet is a wallet where we (Polyblock) hold and manage your private keys on your behalf. This allows you to trade without managing blockchain complexity, but it means we have control over your funds.

Key Points:

• We generate and store your private keys
• We manage wallet operations (sending, receiving, signing transactions)
• You access funds through your account, not directly on the blockchain
• This is different from self-custody wallets where you control your own keys

How It Works

Wallet Creation

When you create an account, we automatically generate a custodial wallet for you. The private keys are encrypted using industry-standard AES-256-GCM encryption and stored securely in our database.

Private Key Security

Your private keys are:

• Encrypted at rest using AES-256-GCM encryption with user-specific key derivation
• Only decrypted programmatically by automated systems for trading and withdrawal operations
• Never accessible to staff — no Polyblock employee can view or access your private keys
• Used exclusively for executing your trades and processing withdrawals — nothing else

Fund Management

When you deposit funds, they are sent to your custodial wallet address. Our automated systems manage the wallet and execute transactions on your behalf when you trade or withdraw. All operations are performed programmatically — staff do not manually access your wallet.

Access

You access your funds through your Polyblock account. You do not have direct access to the private keys. This means you cannot import the wallet into other applications. However, you can withdraw your funds at any time, which transfers them to an address you control.

Risks and Limitations

Security Risks

• Security breaches: Despite our security measures, hackers may attempt to breach our systems and steal funds
• Key compromise: If encryption is compromised or systems are breached, funds may be stolen
• Technical vulnerabilities: Software bugs or system vulnerabilities could potentially be exploited

Technical Risks

• Technical failures: Software bugs, system failures, or operational errors could result in loss of funds
• Blockchain issues: Network congestion, high fees, or blockchain failures could affect transactions
• Data loss: Loss of private keys due to technical failures could result in permanent loss of funds

Operational Risks

• Business failure: If we become insolvent or cease operations, you may lose access to your funds
• Regulatory action: Regulatory actions could result in freezing or seizure of funds
• Service suspension: We may suspend wallet services, potentially affecting your ability to access or withdraw funds

Not Insured

• Federal Deposit Insurance Corporation (FDIC)
• Securities Investor Protection Corporation (SIPC)
• Any other government insurance program
• Private insurance (we do not carry insurance for custodial funds)

If funds are lost due to security breaches, technical failures, business failure, or any other reason, there is no insurance or guarantee fund to reimburse you.

You bear all risk of loss.

Your Responsibilities

You are responsible for:

• Maintaining the security of your account credentials
• Monitoring your account for suspicious activity
• Reporting security concerns immediately
• Understanding that custodial wallets carry inherent risks
• Only depositing funds you can afford to lose

We are not responsible for losses resulting from:

• Your failure to secure your account credentials
• Phishing attacks or social engineering targeting you
• Your sharing of account information with third parties
• Unauthorized access due to your negligence

Withdrawals

You may withdraw funds from your custodial wallet at any time, subject to:

• Platform availability and technical functionality
• Applicable fees (if any)
• Processing times (blockchain confirmations may take time)
• Regulatory restrictions or compliance requirements
• Account verification requirements

We reserve the right to delay or suspend withdrawals for security, compliance, or operational reasons. We are not liable for delays in withdrawal processing.

Acknowledgment

By using custodial wallet services, you acknowledge that:

• You understand that funds are not insured
• You understand the risks described in this disclosure
• You may lose some or all of your funds
• We are not responsible for losses beyond our reasonable control
• You are using custodial services at your own risk

Last Updated: February 13, 2026