The Asset Protection Fund: SAFU

How does SAFU work?

The Secure Asset Fund for Users (SAFU) represents a financial protection mechanism that emerged in the crypto ecosystem a few years ago. It is an emergency fund designed to safeguard users' deposits against unforeseen situations or security incidents. The operational model consists of the platform allocating a portion of the revenue generated from trading fees to feed this safeguard fund, allowing it to grow progressively according to market conditions.

Size and Composition of the Fund

As of January 2022, the fund's value reached 1,000 million USD. However, these figures are not static: the balance constantly fluctuates based on the volatility of the crypto market. By April 2024, the deposits of this protection fund included approximately 1,000 million in USDC. The wallet address of the fund is: [0x420ef1f25563593aF5FE3f9b9d3bC56a8bd8c104]

The context behind SAFU

During an unexpected maintenance event of a trading platform several years ago, executives publicly reiterated that “funds are safe.” This constant communication about the security of deposits generated trust in the crypto community. The phrase “Funds are safe” became popular as a key user protection message.

How the term SAFU was born

A content creator known in the crypto networks made a parody of the term, generating a viral video that transformed the expression “Funds are safe” into the phonetic version “Funds are SAFU”. This version spread quickly among the community, becoming a cultural meme within the cryptocurrency ecosystem. Since then, “SAFU” has been adopted as the common term to refer to user protection funds on various platforms in the sector.