yea they pretty much are. if you try to withdrawl a small (unspecified) amount you just lose it, and they wont pay you back. i guess if you dont want a desktop wallet and you are dealing with large amounts of bitcoins its good. they prey on people that sign up for bitcoin faucets and dont read the fine print. bottom line, if you dont want to store your btcs in xapo permanently DONT use store them there at all. i just lost a who payout to them.