Safety
Non-custodial vs. brokerage: risks & tradeoffs
6 min read
You hold your keys. That means self-custody responsibilities — and freedom from platform lockouts.
The single biggest difference between EquityX and a normal broker is who holds your assets. With a broker, they do. With EquityX, you do.
That trade-off is worth being honest about, in both directions.
What self-custody gives you
- No account can be frozen or closed at the platform's discretion.
- No withdrawal delays or documentation walls to get to your own money.
- Assets are portable across any Robinhood Chain wallet.
- No counterparty risk beyond the smart contracts themselves and the reserve.
What self-custody costs you
- Lose your private key or seed phrase → the assets are gone. There is no support line.
- Sign a malicious transaction → the assets are gone. Every approval is your responsibility.
- No SIPC/FSCS-style insurance on your positions.
Practical guardrails
- Use a hardware wallet for anything material.
- Keep a small hot wallet for day-to-day trades.
- Never share your seed phrase with anyone, including anyone claiming to be from EquityX. We will never ask.
- Bookmark the app and check the URL bar before signing.