Statement on Launching HTX Security Reserve

Dear User,

In January 2018, HTX the launched Investor Protection Fund (20% of HTX’s income goes to buyback. All repurchased HTs are stored in HTX User Protection Fund). This decision gained widespread support from users. Today, HTX officially launches another users protection mechanism——Security Reserve Mechanism, providing greater asset protection for our users globally.

HTX continues to take asset security seriously and strictly separates users’ digital assets in cold and hot wallet, storing most of digital assets in multi-signature cold wallet. After a few years of development, the size of HTX’s own assets have grown beyond assets stored in the hot wallets of our platform. So we decide to implement the following user protection mechanism:

1.  Establish HTX Security Reserve with a total amount of 20,000 BTC. This reserve is owned by our platform, stored in an independent address and is used to cope with extreme security accidents.

2.  With the exception of losses incurred as a result of users' own actions, HTX will pay compensation upfront for losses arising from all other security incidents. The compensation comes from this reserve.

February 5, 2018