# Custody

### How Your Assets Are Held

Terrace uses a hybrid custody model designed to match the right safekeeping structure to each asset type. Assets that are eligible for institutional custody are by default held at BitGo Bank & Trust. Assets that are not eligible for BitGo custody are held on-chain in your own self-custodial wallet.                                                                                                                                                                                     

Your assets are always segregated: from other customers' assets, and from Terrace's own funds. Terrace does not commingle customer assets under any circumstances.

### On-Chain Assets: Your Self-Custodial Wallet

For assets that are not eligible for custody at BitGo, Terrace generates a dedicated on-chain wallet for you. You are the beneficial owner of the private key — not Terrace.

The wallet infrastructure is powered by [Turnkey](https://www.turnkey.com), a cryptographic key management provider that generates and secures keys using hardware-backed enclaves. Turnkey's architecture is designed so that neither Turnkey nor Terrace can unilaterally move your funds.                                                                                                                                                

**Your key, your assets**. You can export your private key from Terrace at any time via **Settings → Wallets → Export**. This means you can always move your on-chain assets independently, without relying on Terrace.

### Fiat and Eligible Assets: BitGo Bank & Trust

Assets eligible for institutional custody — including Fiat USD — are held in For Benefit Of (FBO) accounts at [BitGo Bank & Trust, National Association](https://www.bitgo.com), a qualified custodian and federally chartered trust company.\
                                                                                                                                                                                                                 Terrace is a Custody-as-a-Service (CaaS) customer of BitGo, meaning your assets are held in accounts that are:

* **Titled in your name** (for benefit of you, the customer)                                                                                                                                                        
* **Legally separate** from Terrace's corporate accounts
* **Segregated** from the assets of other Terrace customers

Because your assets are held in FBO accounts rather than on Terrace's own balance sheet, they are not available to Terrace's creditors in the event of insolvency.

### Insurance

BitGo maintains a **$250 million per-incident insurance policy** covering digital assets held in custody. The policy is and is designed to cover losses from external theft, internal theft or dishonesty, and certain operational failures.

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