# Keep Custody & Ownership Unlockd ensures that users retain full ownership and custody of their collateralized assets through user-specific wallets (Unlockd Accounts). While Unlockd has signing rights to these wallets to prevent unauthorized transactions when assets are used as collateral, the custodial responsibility remains with the user. * **User Ownership and Custody**: Users maintain full ownership and custody of their assets. Unlockd does not take custody of the assets but ensures their security by preventing unauthorized transfers during active collateral periods. * **Preventing Unauthorized Transfers**: Unlockd’s signing rights are used exclusively to prevent unauthorized transactions when assets are active collateral. This ensures that the assets remain secure and cannot be transferred without proper authorization. ### Compliance and Regulatory Implications * **Adherence to KYC/AML Regulations**: By maintaining ownership and custody through their Unlockd Accounts, users comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. * **Accreditation Verification**: For users holding assets that require accreditation (such as certain securities or private equity), Unlockd facilitates the traceability process with tokenizing partners. This is particularly important for tokenized financial assets. * **Regulatory Reporting**: The transparent nature of Unlockd Accounts allows for accurate and timely regulatory reporting. This transparency helps in meeting various regulatory requirements, including those imposed by securities regulators and financial authorities. * **Compliance with Custody Rules**: Since the user retains custody and Unlockd only prevents unauthorized transfers, this setup complies with custody rules set forth by financial regulators. Users' assets are safeguarded according to industry best practices. ### Legal and Security Assurance * **Legal Title Retention**: Users retain legal title to their assets at all times. Unlockd’s role is limited to preventing unauthorized transfers, ensuring that ownership rights are not compromised. * **Transaction Security**: With Unlockd having signing rights to prevent unauthorized transactions, all asset movements comply with user intentions and regulatory requirements, providing a secure environment. * **Audit and Compliance Checks**: Regular audits and compliance checks are conducted to ensure that Unlockd’s practices meet all regulatory standards, providing users with confidence in the security and legality of their asset management. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.unlockd.finance/protocol-mechanics/keep-custody-and-ownership.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.