ELFi Protocol places unwithdrawn funds under unified custody with 5% fee
Summary
A platform has announced that it will place remaining unwithdrawn user funds under unified custody, implementing a 5% monthly custody fee for these assets. This approach is characteristic of services winding down operations while still managing user assets. Additionally, users will need to provide proof via Discord to complete any withdrawals, indicating a manual process rather than an automated one. This scenario creates a strong incentive for users to withdraw their funds promptly to avoid incurring ongoing custody charges.
Analysis
User_risk: When a platform starts charging recurring custody fees on residual balances, it creates a strong incentive for users to withdraw promptly to avoid ongoing charges on funds they may have forgotten or been slow to reclaim. Custody_model: The language about placing remaining unwithdrawn funds under unified custody and charging a monthly custody fee is typical of platforms that are winding down operations or changing terms while still holding user assets. Withdrawal_process: Requiring users to provide proof via Discord to complete withdrawals indicates a manual, case-by-case off-platform process rather than an automated in-app withdrawal flow.
Categories
crypto
Related sources
- https://courts.ca.gov/cms/rules/index/five/rule5_52
- https://support.gemini.com/hc/en-us/articles/360032825231-What-are-the-fees-for-Custody-accounts
- https://www.ojp.gov/pdffiles1/ojjdp/189181.pdf
- https://dag.com/docs/custody-security/what-are-the-withdrawal-procedures-limits-and-fees-for-accessing-funds-or-assets
- https://www.sec.gov/Archives/edgar/data/1771146/000199937125008476/ex99-g33.htm
- https://financefeeds.com/kucoin-faces-2-million-seychelles-court-award-over-delisted-tokens/
- https://www.99xi.com/cryptocurrency/cryptocurrency-custody-fees-a-practical-cryptocurrency-guide-for-informed-decisions.html
- https://www.revisor.mn.gov/statutes/cite/518D
- https://www.gemini.com/fees/custody-fee-schedule
- https://cryptoticker.io/en/crypto-exchange-closure-residual-balance-fee/
- https://www.dbs.com.sg/treasures/home/custody-fees.page
- https://www.arabbank.com.eg/docs/default-source/default-document-library/consumer-banking---tariffs-2026-en.pdf?sfvrsn=6fe8939f_0
- https://www.help.saxo/hc/en-us/articles/360001271423-How-are-custody-fees-for-stocks-ETFs-ETCs-and-bonds-calculated
- https://www.reddit.com/r/midas_community/comments/12jsopv/urgent_withdraw_any_assets_youve_left_on_the/
- https://ujs.sd.gov/self-help/family-law-help/shared-parenting-guidelines-plans/