FAQ

What is Axal, and how is it different from a traditional savings account?

Axal is a high-yield savings app for dollars, Bitcoin and gold. Your dollars earn a variable rate, typically 6–10% APY, by being lent through overcollateralized lending markets instead of through a bank, and Axal automatically moves funds to the best available rates. Unlike a bank account, Axal is not FDIC insured.

Can I use Axal if I'm new to crypto or don't have a wallet?

Absolutely. You can deposit dollars by bank transfer, debit card, Apple Pay or Google Pay, and Axal handles the conversion behind the scenes. No prior crypto experience or separate wallet required. If you already own crypto, you can also transfer your existing USDC on Base to your Axal wallet.

How is the yield (APY) generated?

Your funds are automatically allocated to tier-1, overcollateralized DeFi lending platforms like Morpho and Aave. Axal continuously monitors and rebalances your portfolio to maintain APY targets and minimize risk. This is similar to what banks do with your money, but with code to enforce collateral rules and liquidations for efficiency and stability.

Why are these returns higher than what my bank is offering?

DeFi markets have no middleman, so more value accrues to users. The spread between lending APY and borrowed APY is much smaller than that of a traditional bank. Some protocols also offer short-term rewards to bootstrap adoption. Axal helps you capture these bonus windows while actively managing risk.

What are the risks of high-yield crypto strategies?

Because the main asset is tied to the dollar, the main risks aren't price swings, but technical or structural vulnerabilities.

• Smart contract failures – Bugs or hacks can drain pools instantly.
• Stablecoin de-pegs – If your dollar-backed coin loses its peg, your balance is impacted.
• Market volatility – Leverage and sudden price moves can cause liquidations.
• Oracle issues – Incorrect data can trigger false trades or bad exits.
• Reward token inflation – Tokens often drop in value after promotional periods.
• Regulatory shifts – New rules may limit access or liquidity.

What is Axal doing to mitigate these risks?

Axal does not introduce any additional smart contracts that can be exploited. Axal only uses battle tested and audited stablecoins and protocols. USDC, for example, is issued by a publicly traded company with stringent disclosure requirements. We cross-verify price feeds to prevent errors from faulty oracles. Lastly, Axal is monitoring key metrics of every pool such as TVL volatility, APY volatility, and whale activity, reallocating funds if a pool becomes too risky.

Is yield variable or fixed?

Yield is variable. APY may periodically go above 10% or below 6% in extreme market conditions.

Is Axal safe to use?

Axal created a custom Trusted Execution Environment (TEEs), the same technology used by Face ID, to keep user funds safe. Your session keys and private keys are encrypted inside hardware-isolated chips and never leave the secure enclave. Not even Axal can access them. This is a major upgrade from crypto products, which often store keys on servers or browsers which are both vulnerable to hacks.

Can I withdraw my money anytime?

Yes. Axal has no lockups, no withdrawal penalties and no waiting periods. You can withdraw to your linked bank account or to an external wallet at any time. Bank withdrawals typically arrive in 1–3 business days.

Is there a minimum balance or deposit?

No. There's no minimum deposit and no minimum balance. You can start with any amount.

Is there a holding period on new deposits?

No. Deposits are processed through Stripe, and there's no waiting period before you can withdraw.

How often is interest paid?

Interest accrues and compounds continuously, not monthly, so your balance grows in real time.

Is Axal FDIC insured?

No. Axal is not a bank, and balances are not covered by FDIC insurance. Banks runs, which FDIC protects from, are not possible in Axal (there are no lockups and sufficient liquidity in markets). Read Is Axal Safe? for how your money is protected and the risks.

Are there any fees for using Axal?

Axal does not charge any fees or take a percentage of your yield. There are no Axal deposit, withdrawal, trading, or subscription fees.