Why it matters
The withdrawal policy defines when custody is real. Clear policies mean predictable access to your bitcoin. Vague or discretionary policies mean your access depends on someone else's judgment. The quality of a custody relationship is ultimately measured by how withdrawals work in practice.
How it works
A withdrawal policy specifies: what verification is required, how long processing takes, whether limits apply, what circumstances justify delays, and how disputes are handled. Good policies are documented publicly, remain stable over time, and apply consistently regardless of market conditions or withdrawal size.
Example
A custody provider's withdrawal policy states: withdrawals under 1 BTC process within 4 hours with email confirmation; larger withdrawals require 24 hours and phone verification; all withdrawals settle on-chain to any valid address; no discretionary holds. Clients know exactly what to expect.
Related terms
- Exitability
- Withdrawal finality
- On-chain settlement
- Counterparty risk
- Full-reserve custody
- Bitcoin custody provider
- Proof of reserves
