Xapo Vault - Anyone using it?

[Wulfcastle]

Hey everyone

If you guys don't know about Xapo yet, they are a new Bitcoin startup that raised over $40M in funding by venture capitalists : http://www.coindesk.com/xapo-bitcoin-debit-card-launch-month/

I just created an account there and I found out about their vault service :

Quote from their site :

The Xapo Vault is fully-insured, backed by Meridian Insurance. The insurance is provided at no charge to Vault users and covers all incidents that are not caused by you. In this event, any bitcoins you lose will be replaced by Xapo.

What is Xapo Vault?
Vault
Think of it like a leather wallet vs. a steel safe deposit box. Your everyday wallet is convenient and – unless you leave it sitting around – is pretty secure. But then there’s the safety deposit box at your bank. It’s not everyday that you want to get your special something out, but when you do, you have to first pass the bank’s armed guard, then use a fingerprint scanner, and then have the matching key. In the highly unlikely event that something does happen to your bitcoins, and it wasn't your fault, rest assured that they are fully insured, backed by Meridian Insurance. If hackers attack, an employee goes rogue, or any other wrongdoing happens that’s out of your control, we will fully return your bitcoins.

Anyone using this service? Also what do you think about their insurance? I wonder if it would work like typical insurance where I could file a claim if my account get's hacked.

[LiteCoinGuy]

its better than nothing and a good start. the ecosystem needs that kind of service. but isnt the insurance limit at 25 BTC ?! read that somewhere...

also:

"and it wasn't your fault"

so when YOUR pc got hacked because no antivirus, no firewall, no 2factor or bad password, they dont pay you.
they will pay you when THEY get hacked or an employe stole the BTC from their cold storage. hopefully their next employe isnt Mark K. 

[Wulfcastle]

its better than nothing and a good start. the ecosystem needs that kind of service. but isnt the insurance kept at 25 BTC ?! read that somewhere...

Insurance capped at 25 BTC?

[LiteCoinGuy]

i thought capped at 25 BTC. so when you have 30 BTC and the Vault got hacked, they pay you 25 BTC back and the rest of your BTC is gone.

but take a look, maybe iam wrong. too much news in the last weeks  

[Wulfcastle]

"and it wasn't your fault"

so when YOUR pc get hacked because no antivirus, no firewall, no 2factor or bad password, they dont pay you.
they will pay you when THEY get hacked or an employe stole the BTC.

Well they could swing virtually every hacking attempt like that. When THEY get hacked they could (not saying they will) just make an excuse and put all blame on the user. I guess users will have to trust them to keep their word

i thought capped at 25 BTC. so when you have 30 BTC and the Vault got hacked, they pay you 25 BTC back and the rest of your BTC is gone.

but take a look, maybe iam wrong. too much news in the last weeks  

I've been following them for a while with their debit cards, never heard once about their vault service though

[Borisminer]

I was using it, until.... the promise of 48 hours transfer back to my wallet was failed. Now, I can't get back my bitcoins and they stucked between Vault and Wallet and don't move within 5 days! Xapo is a mistake on a bitcoin world map.

[albus]

With the very bad reviews they get on their debit card offering, I would not go there for the Vault...

[bitkilo]

I have signed up to the coinbase vault service but have yet to use it or read the fine print regarding the insurance.
I dont know about xapo but coinbase says they store all customers vaulted coins on paper wallets and usb cold storage in bank vaults around the world. So virus on customers computer should not be an agument with insurance. Employee security is still a concern but should not stop the payouts.
To deny insurance they must prove negligence on the customers part.
I would be all for a annual or quartly independent audit of all coin that should be accounted for in their vaults at anytime.

[albus]

I have signed up to the coinbase vault service but have yet to use it or read the fine print regarding the insurance.
I dont know about xapo but coinbase says they store all customers vaulted coins on paper wallets and usb cold storage in bank vaults around the world. So virus on customers computer should not be an agument with insurance. Employee security is still a concern but should not stop the payouts.
To deny insurance they must prove negligence on the customers part.
I would be all for a annual or quartly independent audit of all coin that should be accounted for in their vaults at anytime.

if user negligence means you lose insurance, you are better off printing a cold wallet yourself!

[bitkilo]

I have signed up to the coinbase vault service but have yet to use it or read the fine print regarding the insurance.
I dont know about xapo but coinbase says they store all customers vaulted coins on paper wallets and usb cold storage in bank vaults around the world. So virus on customers computer should not be an agument with insurance. Employee security is still a concern but should not stop the payouts.
To deny insurance they must prove negligence on the customers part.
I would be all for a annual or quartly independent audit of all coin that should be accounted for in their vaults at anytime.

if user negligence means you lose insurance, you are better off printing a cold wallet yourself!

I think the whole point of having the 'vault' setup it is takes the process of printing the cold wallet out of the users hands, thus taking away the probability of negligence on the users side and placing it with Coinbase. IMO good for not so tech savy people that are worried about their coins but still believe in companies to control the security of the funds.
Not what bitcoin is really about but a very good way to move it mainstream.

[slacknation]

coinbase does what xapo does for free and gives you an option to own the key yourself

[albus]

I have signed up to the coinbase vault service but have yet to use it or read the fine print regarding the insurance.
I dont know about xapo but coinbase says they store all customers vaulted coins on paper wallets and usb cold storage in bank vaults around the world. So virus on customers computer should not be an agument with insurance. Employee security is still a concern but should not stop the payouts.
To deny insurance they must prove negligence on the customers part.
I would be all for a annual or quartly independent audit of all coin that should be accounted for in their vaults at anytime.

if user negligence means you lose insurance, you are better off printing a cold wallet yourself!

I think the whole point of having the 'vault' setup it is takes the process of printing the cold wallet out of the users hands, thus taking away the probability of negligence on the users side and placing it with Coinbase. IMO good for not so tech savy people that are worried about their coins but still believe in companies to control the security of the funds.
Not what bitcoin is really about but a very good way to move it mainstream.

I would say that for not tech savvy people, the companies should handle that kind of security by default, and not offering it as a premium service, if you are using the vault and they give the user the key, then the user needs to understand what the key is doing, so a bit tech savvy.
The best would be for the basic user not to need to know anything at all about the tech.