Insolvency Policy

1. Purpose

This Insolvency Policy explains how customer assets are treated if KemApp.io (operated by KEMFINITY s.r.o., the “Company”) becomes insolvent, enters administration, or is otherwise unable to continue operations. It is designed to provide clarity about the segregation of funds, legal ownership, and the withdrawal process for customers.

2. Custodial Wallets and Segregation of Customer Assets

• Custodial Structure: The Company provides custodial wallets, meaning we safeguard digital assets on behalf of customers.
• Segregated Storage: Customer assets are held in wallets that are completely separate from the Company’s own operational accounts. The Company never mixes its own funds with those of customers.
• Ledger Segregation: Each customer’s holdings are separately recorded and reconciled on our internal ledger. This ensures that customer balances are clearly identifiable and not pooled together.
• No Rehypothecation: Customer assets are never lent, pledged, or otherwise used by the Company for its own purposes.

3. Legal Ownership of Assets

• Legal title to digital assets deposited in custodial wallets remains with the customer at all times.
• The Company acts solely as custodian and does not acquire beneficial ownership of the assets.
• In the event of insolvency, customer assets do not form part of the Company’s estate and are not available to satisfy claims of the Company’s creditors.

4. Withdrawal of Assets in the Event of Insolvency

• Upon insolvency, an insolvency practitioner or court-appointed administrator will take control of the Company.
• Their responsibilities will include:
  • Identifying and securing all segregated customer assets.
  • Reconciling customer entitlements against the internal ledger.
  • Facilitating the return of assets to customers.
• How to Withdraw: Customers will be required to submit a withdrawal request to the appointed insolvency practitioner/administrator, along with identity verification to confirm entitlement.
• If direct withdrawal from wallets is not immediately possible, the insolvency practitioner will arrange the orderly return of assets to customers.

5. Priority of Claims

• Because customers retain legal ownership, their assets are excluded from the Company’s insolvency estate.
• The insolvency practitioner must return customer assets before addressing claims of unsecured creditors.

6. Customer Communications

• If the Company becomes insolvent, customers will be promptly notified via:
  • Email to the address registered with their account.
  • An official notice on the Company’s website and app.
• Clear instructions will be provided for submitting claims or withdrawal requests.

7. Dispute Resolution

• Any disputes concerning entitlement to assets will be resolved in accordance with applicable law and under the supervision of the insolvency practitioner or the relevant court.

8. Governing Law

This Insolvency Policy is governed by the laws of the Czech Republic, consistent with the Terms & Conditions of KEMFINITY s.r.o., without prejudice to mandatory consumer protections in a customer’s country of residence.