How does Cinoslots store player funds?

The two-tier wallet model

Like every reputable crypto-native casino and exchange, Cinoslots operates a two-tier wallet architecture:

Cold storage (98% of player funds)

• Multi-signature wallets requiring 3-of-5 hardware-key signatures to move funds
• Hardware keys held by 5 different officers in 5 different jurisdictions — no single officer can drain
• Offline (air-gapped); signing requires physical access to the hardware in a secure facility
• Reviewed monthly by our internal security team
• Audited annually by a third-party firm; results published in our annual transparency report

Hot wallet (2% of player funds)

• Holds enough crypto to cover 24 hours of expected withdrawals plus a buffer
• Auto-replenished from cold storage as needed (one daily replenishment ceremony)
• Single-sig but secured with HSM (hardware security module)
• Monitored 24/7 with anomaly alerting

What this means for you

If our hot wallet is somehow compromised (extremely rare; would require defeating our HSM), the worst-case loss is the 2% in hot storage — and we cover it from operational reserves, not player funds.

Transparency proofs

We publish:

• Proof-of-reserves quarterly — Merkle tree showing the sum of all player balances; you can verify your balance is included
• Annual transparency report — total inflow/outflow per chain, cold-storage attestation, audit firm summary
• Real-time hot wallet balance at /transparency (refreshed every 5 minutes)

What we DON'T do

• We never lend out player funds. Our balance sheet is fully covered at all times.
• We don't offer "yield" on idle balances. Your deposit is yours; it's not staked or deployed elsewhere.
• We don't comingle player funds with operational funds. Player funds live in dedicated wallets, segregated by law.

Insurance

Our hot wallet is covered by a third-party crypto-asset insurance policy (currently $25M aggregate per incident, $50M annual). Cold storage is uninsured by design — the security model itself is the protection.

What if Cinoslots goes bankrupt?

Per Section 17 of our Terms of Service, player funds are held in trust under our Curaçao license. In a bankruptcy scenario, player balances are senior to all corporate creditors and would be repaid first from cold storage.

How to verify our claims

We publish wallet addresses for our cold storage on the transparency page. You can verify balances on-chain in real time. We do not move cold storage funds outside the daily replenishment ceremony — any movement triggers a public log entry.