Cube.Exchange has developed state-of-the-art, multi-party computation (MPC) technology that enables you to create an MPC Vault for holding your digital assets so that they are always within your control and ownership. You are never required to move your digital assets into Cube custody to trade on Cube.Exchange. Your assets remain in your MPC Vault and your custody and control.

Once you create a Cube Client Account, you initiate a distributed key generation to securely generate the private key material that constitutes ownership of your own MPC Vault. The MPC Vault supports the common derivation of one or more segregated non-custodial digital MPC wallets for each native blockchain.

Your MPC Vault is a collection of all of your MPC Wallets. For example, you may have a BTC MPC Wallet, an ETH MPC Wallet, and a SOL MPC Wallet, all within your MPC Vault.

The distributed key generation process involves you, Cube.Exchange, and an independent network of trusted third parties – the Guardians.

Upon creation of your MPC Vault, you will receive a PDF document containing your share of the distributed key material protected by a two-of-three signature threshold. It is your responsibility to store the PDF of your key share in a secure place. The distributed key material helps ensure your funds are safe as its shares are used to support settlements on the exchange.

This use of MPC technology enables your non-custodial control and ownership of your funds, which means only you have access and authority to move your funds. Your funds are never co-mingled with another user’s funds. This protects your assets from exchange bankruptcy, misuse, or “bank-run” issues many exchanges have had.

The Guardians are trusted third parties serving as an independent verification and trust mechanism, minimizing the risk of fraudulent or incorrect transactions while bearing limited liability. They are involved in the Cube.Exchange transaction authorization process, which prevents any single entity, including the exchange itself, from unilaterally manipulating or misusing user funds. This multi-party involvement helps maintain a transparent and accountable process, reinforcing the platform's integrity. Adding an extra level of protection, the Guardians facilitate direct communication and withdrawals in case of exchange failure. This proactive measure mitigates the risk of financial loss or lock-in.

Cube believes it is important to prioritize well-established and trusted entities within the blockchain or financial industry with a proven track record of reliability and security to fulfil the Guardian role.

Cube.Exchange aims to provide a mechanism for the recovery of lost keys for users. When ready the feature is ready, the user must report that their key share is lost or stolen, which may require additional verification outside of the normal authentication process (for example KYC documents). If the key share was stolen, Cube.Exchange will immediate publish this information to the Guardians so they do not process any transactions involving the affected MPC Wallet(s). To reconfirm their identity, the user will be required to undergo an identity verification process, like the one used during their onboarding. As a result of that process (which includes ID verification), Cube.Exchange will publish the results to the Guardians and the user. Assuming a positive verification, in the case of a lost key share, a new key share will be generated. In the case of a stolen key share, a new MPC Wallet will be created, and new key shares will be distributed to the user, Cube.Exchange, and the Guardians. Finally, the user’s digital assets will move from the prior MPC Wallet to the new MPC Wallet.

For more information on how your MPC Vault works, please review our Terms of Service or our Litepaper

If you have any issues or questions please don’t hesitate to contact us via chat or email support at [email protected]