When we talk about cryptocurrencies, one of the biggest concerns of users is the security of their funds. After all, the market is digital, decentralized, and often a target for hackers' attacks. To increase confidence and protect its clients, Binance created the SAFU – Secure Asset Fund for Users.

What is SAFU?

The SAFU is an emergency fund created by Binance in July 2018, with the aim of protecting users in extreme situations, such as hacker attacks or serious security breaches.

In simple terms, it is like a kind of insurance: if something unexpected happens, Binance uses SAFU to cover user losses.

How does it work?

- Source of resources: Binance allocates a portion of the transaction fees charged on the platform (usually 10%) directly to SAFU. This means that the more activity there is on the exchange, the more the fund grows.

- Custody: SAFU funds are kept in cold wallets, that is, disconnected from the internet, to increase security.

- Transparency: SAFU wallets can be publicly verified on the blockchain, showing that the resources really exist and are reserved.

- Action: in the event of serious security incidents, Binance may use these funds to reimburse affected users.

Real examples of SAFU usage

One of the most well-known cases occurred in May 2019, when Binance suffered a hacker attack that resulted in the theft of about 7,000 BTC.

Despite the severity of the attack, no user lost funds because the exchange used the SAFU to cover all the losses.

Why is SAFU important?

- Trust: provides more security to users, as there is a protection fund in the event of unexpected failures.

- Responsibility: shows that Binance is committed to security and does not transfer all the risk to the investor.

- Unique model: few cryptocurrency exchanges have something similar, which makes SAFU an important differentiator.

👉 In summary, Binance's SAFU functions as an emergency fund, fueled by trading fees, which serves to protect users from losses caused by extreme events. This initiative strengthens trust in the ecosystem and demonstrates the exchange's commitment to security.