What is Pocketwo?

Pocketwo is a new home for your savings. Pocketwo offers the ability to generate high and stable interest on your cash. By depositing funds into Pocketwo, your money will immediately start generating interest.

Is Pocketwo regulated?

We are not licensed by MAS.  

While Pocketwo continually strives to promote user trust and security of users’ funds, our business model currently does not fall under the purview of MAS’s regulatory framework.  

We are constantly monitoring our business model together with our legal team to ensure an up-to-date view of the regulatory environment in Singapore and appropriate compliance.

What are my risks?

Smart risks
To limit this risk, we only work with protocols where:

1. Code is audited (one of the main objectives of audits it to verify that rug pulls are not possible)
2. Ownership expressed in their governance token is distributed among at least 100 distinct entities
3. Any protocol changes must pass through a transparent public vote before being implemented
4.They have successfully reached a certain size ($500 million market cap from 100+ participants).

Stablecoin risks
- While stablecoins generally are stable, in times of high market volatility (e.g. if a lot of one specific stablecoin is sold at the same time) there is a risk the stablecoin’s peg deviates from the dollar. This means at a certain point the value of the stablecoin actually differs from $1.00 (e.g. it could be trading at $0.98).

- Stablecoins have two types of mechanisms for restoring their peg back to $1.00 in such cases. Full reserve backing or algorithmic peg.

- Nonetheless, there could be times in which the value of a stablecoin temporarily or permanently depegs. Users might incur a loss of some or all of their capital if this happens. We deal with this risk in three ways:

1. We only use the most trusted and tested stablecoins.
2. We allocate funds across a number of stablecoins to not be fully exposed to the potential instability of one stablecoin. If a withdrawal is requested and one of the stablecoins we use is not at its peg, we can still use other stablecoins to send you your funds without delay. In extreme cases we might be forced to increase the withdrawal time to 3 business days to allow more time for the peg to stabilise.
3. We handle deposits and withdrawals in USDT via KuCoin. Every KuCoin user can always trade USDT to USD 1:1 inside KuCoin without fees. This means the customer will always receive the exact amount of USD that was requested.

How are my funds protected?

Pocketwo only deals with highly stable and over-collateralized tangible and digital assets. Pocketwo uses the most up-to-date security measures including robust end-to-end encryption, multi-factor authentication, and 24/7 security monitoring.

As detailed in your account agreements, Pocketwo is not SDIC insured and like any financial product, there is a risk that your investment may lose value. We continuously monitor our portfolio construction in order to ensure protection of your investment.

How often can I withdraw my funds?

You can deposit and withdraw funds at any point in time!

Is there a fee to deposit or withdraw?

There are no fees to deposit or withdraw from Pocketwo. Transferring funds in and out is free, forever.

How does Pocketwo make money?

We make money by making you money. To earn interest on your stablecoin, we connect you to secure lending partners and find the best rates available for your money.

When these borrowers pay interest on the loans they’re provided, we are able to pass that income back to you as a reward for saving. To continue providing this service, we take a spread on the interest earned.