Great questions, Trêvoid.

1. From looking at some other mid-size exchanges, their solution for this is to sometimes buy an insurance fund (the fund would only cover losses up to a certain amount).

At the moment, Firetrade does not have revenue, it just opened to the public yesterday.

As soon as Firetrade has the revenue to purchase an insurance fund, I'm going to purchase it. When I do that, I'll post the information here and on the front page of Firetrade.

My goal is to eventually cover 100% of user funds, not just a percentage of it.

2. If a user account violates AML/KYC policies, trading and deposits will be disabled. The user will still be able to withdraw their funds, except in cases where we are legally prohibited from allowing withdrawals from that account.

In other words, we'll do everything we can do to make sure a user can get their deposits back, but if we're being told in a specific case that we can't allow withdrawals without facing legal consequences, then there's not much that we can do at that point.

I think that's the moral and ethical way to approach that issue. I'm open to listening to other viewpoints.