Quote from: Pmalek on Today at 03:39:00 PM

Quote from: splashed on Today at 08:50:54 AM

1. "Non-custodial" - This term is used as a contrast to the process of regular CEX exchanges where users deposit their funds into a custodial wallet owned by the exchange, perform the swap in the exchange, and have the output currency in a wallet owned by the exchange, before they're able to withdraw into their own wallet (if they even do that).

2. "If you refuse my exchange, the website crashes, or something else happens, how do I get my coins out without your help?" - You're correct in that you'll have to trust us for a few minutes when we process and perform the exchange. We acknowledge this and we are ready to earn users' trust with time.

What you explained is the workings of a custodial service. The deposit addresses your users deposit to are under your control. You own the keys to them. It's exactly the same as with other instant exchanges. For instance, eXch, which was very popular on Bitcointalk. After reading your T&Cs and the mention of sending customers private keys, I thought that was the case with all swaps, but as you explained below, it isn't. Exchange owners seem reluctant to call their service custodial. You shouldn't be if your intentions are good. Your service isn't trustless and it's custodial but you can build a brand here if you do it right. There is a market to fill. I wouldn't give custody any importance in your OP. Most of us here know how instant exchanges work and someone could see it as annoying when claims are made that aren't correct.

Quote from: splashed on Today at 08:50:54 AM

3. "Transmitting private keys to customers" - Currently this is only when we refund DAI -> X exchanges. If for some reason we are unable to perform the requested DAI -> X exchange, we would just transmit the private key of the receiving DAI address to the user (To simplify the process, so we would not have to 1. ask users for their refund address 2. send eth to the receiving address and 3. send the DAI to the refund address).

Got it, thanks. But why only for DAI and not also for ETH or all cryptos for that matter?

Quote from: Z-tight on Today at 10:56:02 AM

Quote from: splashed on Today at 08:50:54 AM

You're correct in that you'll have to trust us for a few minutes when we process and perform the exchange. We acknowledge this and we are ready to earn users' trust with time.

Yeah, and that is what makes it centralized and custodial, just like other instant exchanges, the moment funds are deposited into the deposit address you provide, you have custody of the coins. I don't have a problem with instant exchanges, in fact, i believe we need more of them that are legitimate and privacy oriented, but it is good to set the records straight that they are centralized and custodial, so newbies know this before going ahead to use them. Welcome and Good Luck.

"Custodial"
Seems the consensus here is we should remove the term "non-custodial". We'll take the feedback into account

But why only for DAI and not also for ETH or all cryptos for that matter?
For native coins we just refund it straight to the user's specified refund address.