Frontnode is the trading name of Quickbyte Global OÜ, a company registered in Estonia and supervised by the Estonian Financial Intelligence Unit. This Risk Appetite Statement explains the types of risk we are willing to accept, the risks we actively limit, and the way we manage risk so we can offer a safe and reliable service to our customers.
Our overall approach is cautious. We are a Bitcoin only platform, and we would rather grow steadily and safely than take shortcuts that could put our customers or their funds at risk.
Our approach to risk
Taking some risk is a normal part of running any financial service. The goal of this statement is not to remove all risk, which is impossible, but to be clear about how much risk we accept in different areas and how we keep it under control. We review the risks we face regularly and adjust our controls as our business, the market, and the rules around us change.
Financial crime and money laundering
We have a very low tolerance for financial crime. We do not accept money laundering, terrorist financing, fraud, or sanctions breaches in any form. To protect against this, we verify the identity of every customer, screen against sanctions and politically exposed person lists, monitor transactions, and use blockchain analysis tools. Where we have concerns, we will act, which can include pausing or closing an account and reporting to the authorities. You can read more on our AML and KYC Policy page.
Regulation and compliance
We have a low tolerance for compliance failures. We aim to follow all laws and regulations that apply to us, and we build our processes around meeting them. We are supervised by the Estonian Financial Intelligence Unit and have applied for a licence under the EU Markets in Crypto Assets Regulation, known as MiCA.
Security and custody of assets
We have a low tolerance for security risk. Protecting customer funds and data is one of our highest priorities. The majority of customer Bitcoin is held in offline cold storage protected by multi signature technology, account access requires strong authentication, and our systems are encrypted and tested regularly. We keep customer funds separate from our own company funds.
Operational risk
We accept that some operational risk is unavoidable in any technology business, but we keep it as low as we reasonably can. We invest in reliable systems, clear internal processes, and trained staff so that our service stays available and works as expected. We plan ahead for problems so we can recover quickly if something goes wrong.
Market and financial risk
The price of Bitcoin can rise and fall sharply, and that market risk sits mainly with customers who choose to buy and hold Bitcoin. We are clear and honest with customers about this. As a company, we manage our own financial risk carefully so that price swings in the market do not threaten the stability of our business or our ability to serve you.
Reputational risk
We have a low tolerance for anything that could damage the trust customers place in us. We aim to communicate clearly, treat customers fairly, and act with integrity in everything we do. We would rather turn away business than take on activity that conflicts with our values or our compliance standards.
Governance and oversight
Responsibility for managing risk sits with our management team, supported by our compliance function. We keep written policies, monitor how well our controls are working, and update them as needed. Staff receive training so that managing risk is part of how we work every day, not an afterthought.
A note for our customers
Bitcoin is a relatively new asset, and its value can be volatile. You should only buy Bitcoin with money you can afford to set aside, and you should make your own decisions based on your personal situation. Nothing on this page is financial advice. Our role is to give you a regulated, secure, and transparent way to access Bitcoin, and to be open with you about the risks involved.
Reviewing this statement
We review this Risk Appetite Statement on a regular basis and whenever there is a significant change to our business, the market, or the rules that apply to us. If you have any questions about how we manage risk, you can contact our team through our Contact page.
