How are my funds secured in Lava?

Lava is designed to offer you the strongest possible security guarantees so that you know your assets are always safe, stored securely, and never rehypothecated.

Lava is built using institutional-grade security infrastructure used to safeguard more than $100B in assets and designed to eliminate single points of failure. All assets on Lava are backed 1:1. This includes bitcoin and dollars held directly in Lava accounts, as well as bitcoin that’s used as loan collateral.

Assets held on Lava are never rehypothecated— this means that your funds are never lent out or traded. Bitcoin that’s being used as loan collateral is always in segregated collateral addresses and only moves when a loan is initiated or closed. Users can freely move funds onto and off of Lava without restrictions at any time. Lava offers a verification system built off a Proof of Reserves Plus protocol, where you have confidence that your funds are safe using a traditional proof of reserves style verification as well as the ability to view collateral on-chain.

Lava has been audited by independent security experts and is backed by the world’s leading fintech investors (including Khosla Ventures, Founders Fund, and Susquehanna). Our team includes bitcoin developers who have served as core contributors for projects including Bitcoin Core, Lightning Network, and DLCs. Lava was built from day one to be the most secure platform for bitcoiners. Security is our top priority.

You can also contact our US based client service team 24/7 with any questions. Our goal is to build the most reliable financial institution for bitcoiners, and we are here for you.