Your custodial Rewards Account allows you to earn rewards on the funds you keep in your wallet.
All you need to do is transfer crypto from your Private Key Wallet or Trading Account into your Rewards Account and leave it there, and we’ll do the rest!
How do Rewards accounts work?
Rewards are calculated and compounded daily, and paid out monthly (on the 1st of each month). All amounts are denominated in crypto (e.g. denominated in BTC if you transferred bitcoin), including transfers into the account, withdrawals, and rewards calculations and payments.
Rewards will be paid before end of day on the 1st of each month.
When you make a transfer into your Rewards Account, you will be shown the relevant rewards rate. This is an annualized rate: it’s the amount of rewards you would earn if you kept your funds in the Rewards Account for one year.
Let’s say you transfer 1 BTC into your Rewards Account with a rewards rate of 6%*. You would receive rewards monthly, and at the end of the year, assuming no further transfers or withdrawals and no changes to the rate, you would have 1.06 BTC in your Rewards Account.
How are Rewards calculated?
We use the following formula to calculate daily rewards:
Daily Rewards = (Principal + Accrued Rewards so far) ((1+ annualised rewards rate)^(1/365)-1)
Let’s say you transfer 1 BTC into your Rewards Account. On the first day, the rewards would be calculated as follows:
Daily Rewards = (1 BTC + 0 BTC) ((1 + 0.06)^(1/365) - 1) = 0.00015965358 BTC
If you continue to hold the principal and the earned rewards in your Rewards Account, the daily rewards will increase over time, because the previous rewards will be also accounted as part of your balance when accruing future rewards.
Keep in mind that, due to market conditions, the rewards rate may go up or down while your funds are in the account. We will inform you of the change via email and you can always check the current rewards rate for your account in the account details as well (accessible in the Rewards Account tab of your wallet) and withdraw or transfer more at any time.
*Rewards rate for bitcoin at the time of writing is 6% annually. This may be subject to change. Please see the Rewards Account page in your wallet for current rates.