[SERIOUS] I read the Kraken's Terms of Service, so you guys don't have to. Better be Safe than Sorry! A heck of a lot better than many other CEXs. Part 2: Kraken

Hey everyone, I have started a series where I go look at top exchanges's terms and conditions which most people ignore and then end up paying if something goes wrong, CEX should only be used for trading and you should not store your funds in any of the exchange. This time, I read Kraken's

I just went through Kraken's terms of service myself, so you guys do not have to. After reading the terms of service, I found out some important information that you may not have known. I've done all the digging, and got some insights to share.

I'll compare the part 1 ( Binance TOS ) with this one ( Kraken's TOS ) for better understanding.

Starting with the biggest Pro of Kraken:

Kraken proudly distinguishes itself by assuring continuous ownership of your funds, unlike Binance, Kraken says your funds are yours all the times. They don't use a fractional reserve system, so your coins are not lent out to other users or institutions.

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• 1 - Not your assets anymore (Dormant Account) :

I could not find a dormant account policy in Kraken's Terms, while Binance does have it. This means that your Kraken account will not be charged a monthly maintenance fee or closed if you do not use it for a period of time. Binance, on the other hand, may sell off your assets, transfer them to another account, or use them for their own purposes if your account is dormant. They may also charge you fees for maintaining your account.

Kraken: W

• 2 - The arbitration clause:

All disputes arising out of or in connection with these Terms, including any question regarding its existence, validity or termination, shall be finally settled by binding arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce. The arbitration shall be conducted in English.

Written in Kraken's Terms and Conditions

Kraken requires that any disputes arising out of or relating to these Terms of Service will be resolved by binding arbitration in San Francisco, California, in accordance with the rules of the American Arbitration Association. This means that you will not be able to sue Kraken in court if you have a dispute with them. You can find this in Section 22 of TOS.

Both Kraken and Binance: L

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• 3 - The limitation of liability:

Both Kraken and Binance have similar policy regarding this. They do not want to be held responsible for any thing even if it's there fault.

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https://preview.redd.it/1hhgk7ofboib1.png?1059&format=png&auto=webp&s=7bb5718c753f6cf9035981ecffbb934f8e153b17

In simple words, Kraken is not liable for any losses you may suffer as a result of using their platform, even if those losses are caused by Kraken's negligence.

Both Kraken and Binance: L

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• 4 - Margin Disclosure Policy:

It would be a lot better if you read the text in the image below yourself, I just can't lmao.

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https://preview.redd.it/39hpomydgpib1.png?1097&format=png&auto=webp&s=283d23e0f21a10cc485bb8aaa5ff6440866cdf17

So basically, one can lose all of their savings, even if they have met the margin requirements. " Do not mistakenly believe that we must contact you " bruh

Kraken: Big L

Some common pointers from terms and conditions ( Can be same for all CEX ) :

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• The lack of regulation: Kraken is not regulated in many jurisdictions, This means that there is no government agency to protect you in the event of fraud or theft.
• The right to suspend or close accounts: Kraken reserves the right, in its sole discretion, to suspend or close your account at any time, for any reason, including, without limitation.
• The collection and use of user data. Kraken collects and uses a lot of user data, including personal information and trading activity. This data could be used to track your trading activity, target you with advertising, or even be sold to third parties.
• Binance's terms of service do not mention "ownership" or "insurance: It is important to note that Kraken does not offer insurance on your cryptocurrency assets. However, CZ announced SAFU fund in case of any hacks but it is not mentioned anywhere in their Terms.

One good thing about Kraken is that at least you own your crypto. But again, using CEX to store your crypto would be like hitting an axe on your foot.