Unlike digital currencies such as BTC, CNODE are a security. They are a digital representation of the rights to an asset, in this case the equity of CryptoNode Ltd. The regulating authority in Labuan, where CNODE are issued, the Labuan Financial Services Authority (LFSA), requires that they are treated as such. This treatment means that holders have certain rights and obligations.

For example, CNODE holders need to pass KYC/AML checks and have an OnchainID associating a whitelisted ETH address with their identity before the CNODE smart contract will allow tokens to be transferred to that ETH address. Transfers are restricted according to compliance with the security regulations. These transfer restrictions make it unlikely that CNODE can be transferred from a holder's wallet without their knowledge or consent.

In the unlikely event CNODE have been illegally or improperly transferred from a holder's wallet, CryptoNode have the ability to recover the CNODE and force transfer them back to the rightful owner. CryptoNode also have the ability to reissue CNODE in the event that the holder loses access to their wallet. The process is simple and initiated by the holders.

Because they cannot be lost or stolen, there is no advantage to using a hardware wallet such as Trezor to store your CNODE. We recommend using MetaMask to manage your CNODE holdings.
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