OKX exchange announced the launch of the Shield program in Europe on September 22, which offers compensation for losses from account takeovers. Protection will vary depending on the client's level: standard users can receive up to €100,000, VIP 1–3 users – up to €250,000, and VIP 4–6 users – up to €500,000. The Shield program is not insurance or a compensation system, as the company emphasizes that it is a voluntary initiative. Compensation will be at the company's discretion based on the user's compliance with the program conditions. To receive protection, users must complete a six-step security process, including the use of passwords, multi-factor authentication, and withdrawal protection. Meeting these conditions allows clients to become part of the program and receive financial protection in the event of an account takeover by third parties.
The goal of this program – to encourage clients to use stricter security measures. The launch of Shield suggests that exchanges now provide economic incentives to improve account security, emphasizing the importance of proper protection. It is important to note that the Shield program is not legal insurance, deposit protection, or a mandatory compensation scheme, as clearly stated in its terms of use. Clients should understand that despite the potentially high compensation limits, Shield is a goodwill initiative without regulatory oversight.
Given that Shield is not an insurance product, the legal status of the program is clearly defined. By using Shield, clients must understand that the program does not provide regulated deposit protection. This approach reflects OKX's commitment to raising security awareness among its users and creating an economic incentive to adhere to best practices in account security.
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