BTC Proxy
  • BTC Proxy Documentation
  • Getting Started
    • What is BTC Proxy?
    • Current Challenges
    • Features
    • The Proxy Relay
    • BTC Proxy Advantages
    • Use Cases
    • User Interface & Navigation
    • On-Chain Transfer Restrictions
    • Fees
    • Minimizing Transaction Risks
  • Minting
    • How to Mint Video
    • What is Minting?
    • Minting Sequence
    • BTC Proxy Mint Interface
    • How to Mint?
  • Redeeming
    • How to Redeem Video
    • What is Redeeming/Burning?
    • Burning Sequence
    • BTC Proxy Redeem Interface
    • How to Redeem?
  • Custody
    • What is Custody?
    • Custodian Wallet Setup
    • Transferring Funds from Cold to Hot Wallets
    • Insured Custody
    • Regulated
    • Integration
  • PRXY Token
    • What is PRXY Token
    • Tokenomics
    • Functions of PRXY
    • Allocation
    • Roadmap
    • Legally Binding
  • BTC Proxy DeFi
    • Bitcoin Farming
    • Compound Staking
    • Treasury Bonds
    • Programs
    • Redux
  • Contract Addresses
Powered by GitBook
On this page

Was this helpful?

  1. Getting Started

Minimizing Transaction Risks

Lists ways to minimize transaction risks

  • Rolling audits will be conducted by external third parties to verify that all BTC Proxy tokens minted have an equal amount of assets stored among all custodian’s wallets. In the case of BTCpx, proof of reserves can be made visible with the publishing of signatures from the corresponding Bitcoin addresses store.

  • Distributors and users can mint tokens by interacting with the smart contract directly. Hence creation or redemption of tokens will involve the user initiating and completing the process independently. This model eliminates any centralized counterparty risk.

  • Distributors and users interact directly with the custodian without intermediaries.

  • The existing credibility of the participating institution(s) is always at stake for the integrity of the framework.

PreviousFeesNextMinting

Last updated 4 years ago

Was this helpful?