SAFU: Binance's Shield Against the Unexpected
SAFU, or Secure Asset Fund for Users, is an insurance fund created by Binance in July 2018. This insurer aims to enhance Binance's security and stop:
Security incidents
Hacks
Other unforeseen events
The fund was established to demonstrate Binance's proactive attitude in managing any dangers in the crypto sector and to emphasize its commitment to user safety.
According to official data from the exchange, Binance SAFU is valued at $1 billion; the exchange monitors its size to ensure it remains sufficient for maximum user security.
Ten percent of all transaction fees collected on the platform are allocated by the exchange to SAFU.
Types of loss under SAFU, losses covered of the following types:
Losses that individuals incurred due to a breach of the Binance account login information
Weakness or failure in Binance's security mechanisms and policies
Other types of losses that Binance determines are eligible for recovery.
Binance SAFU: Origin of the Name
Changpeng Zhao, the creator of Binance, often said: "Funds are safe." He originally tweeted it during an unplanned maintenance of the exchange, wanting to ensure that consumers knew their money was secure.
A content creator named Bizonacci published a video on YouTube in 2018 titled "Funds Are Safu," and this phrase quickly became a meme that the community started using since then.
