![ama3.png](https://steemitimages.com/DQmcPvTG4RDywjVjAcYn17UoZHWEd46BFoNLAAqjZqwWiHE/ama3.png) *This week, we’ve gathered all sorts of questions regarding the Crypterium app, the ecosystem and the monthly loyalty program in the third and final part of our [“Ask Me Anything” article series](https://steemit.com/crpt/@crypterium/crypterium-cco-on-product-updates-and-marketing-activities) with Crypterium’s co-founder Vladimir Gorbunov.*

Security, usability and attention to detail

Are you testing payments through Crypterium App?

Of course. We currently provide invitation-based access to extended features, such as crypto-fiat transactions to make sure everything works perfectly. We are testing all sorts of transactions with extra attention to risk management and fraud security. Very soon, you’ll be able to use the safest, most user-friendly cryptobanking app out there.

Can we see a demo of a payment in a real-life coffee shop?

Yes, our [first demo](https://www.youtube.com/watch?v=-Q3ILm8of6Y) is already up, and there’s more to come. Subscribe to our social media channels to be the first to get the new demos: [Facebook](https://www.facebook.com/crypterium.org/), [Twitter](https://twitter.com/crypterium), [YouTube](https://www.youtube.com/channel/UCulhwOW251X2fpRJ7bTCCvg?).

What’s the progress on the development of the full iOS app?

Both, Android and iOS versions of Crypterium App are already available in [Google Store](https://play.google.com/store/apps/details?id=com.crypterium) and [AppStore](https://itunes.apple.com/US/app/id1360632912?mt=8). As I mentioned, they currently provide invitation-based access to extended features. Alos, the iOS app’s functionality lags one month behind that of the Android version just because we started working on it later. What’s important, both apps will be fully functional by the end of Q2 as promised.

Will contactless payments work from day one on the iOS app in the UK?

We are currently working with a number of providers, all of which deal with some form of contactless payments. Our aim is to bring each variety to the market as quickly as possible. We will keep you informed on the launch dates and other details as we reach agreements with our vendors. With that said, we expect contactless payments to be working in the UK since day one.

How will you work with taxes? Will I be able to download a list of all my fiat payments?

Of course, the transaction history will be available in Crypterium app. You’ll be able to order standard bank statements. Tax implications regarding crypto can differ from country to country: for instance, some countries (like Japan) may consider crypto an actual currency, while others (like USA) will consider it a commodity or security. Either way, it is our intention to let our clients download all the data regarding the operations they have performed through Crypterium, so that the client could take that data to the local taxman and pay all the taxes following the particular country’s tax laws. To ensure the best user experience, we’re also thinking of direct integration of our bank statements with regulatory authorities of the EU and other jurisdictions where it’s necessary.

Are you going to provide wallet insurance from hacking?

We’re currently working on our insurance policy which will probably see the light later this year. But what I want to emphasize is that our app’s security will meet all the security requirements for mobile banks. Private keys will not be stored within the app, so it will be impossible to get access to them by just hacking the phone. Databases will be backed up on a regular basis. We are paying a lot of attention to security issues as well as risk management procedures. We have algorithms in place that prevent any unauthorized access to our system. Even if there’s a breach, the risk will be minimal. If there’s a breach through the user’s fault, we’ll have to deal with it on a case by case basis.

Do I have to own CRPT to use the app? Or will CRPT be purchased in the background and instantly burned with every transaction?

You will have to own CRPT tokens in your wallet, and it will be used as ‘gas’ for crypto-fiat transactions. At the same time, you can use our crypto/crypto solutions to transfer a cryptocurrency from one wallet to another without paying fees in CRPT.

Like clockwork: the Crypterium ecosystem

Will Crypterium develop its own exchange for acquiring CRPT tokens?

We are already developing our own exchange platform. The first version with the basic functions will be released this summer, and by October it will be fully functional. We have a goal of making it into the Top 20 crypto exchanges by trading volume within a year, and we can boast a team of world-class professionals with extensive experience in building exchanges to achieve that goal.

Which countries will require KYC?

KYC is pretty much universally required, aside from a few offshore jurisdictions which are not countries that we’re focused on. We will operate KYC for all countries on international standards. At some point, we might also introduce some watered-down version of our product with low limits and limited access for those who want to try out our app before going through the KYC procedure and getting access to the full version.

Will the CRED have a different purpose than the CRPT? Will there be a separate ICO for the CRED token?

The CRED token is Crypterium’s subtoken. We will allow you to get loans in crypto that will be instantly transferable into your currency of choice. There won’t be an ICO, and CRED tokens won’t be traded on any external exchanges. They will be issued and burned by Crypterium alone, and will be available only on Crypterium’s internal exchange. There will be no emission limits, and the number of tokens will only depend on the amount of issued loans.

What is the interest rate when you lend CRED?

The interest rate and lending conditions, which may or may not include collateral, are based on a detailed KYC procedure. Our lending risk algorithms take into account externally supplied credit scoring data and information from previously issued and repaid loans. All in all, the rate is determined by two components. Crypterium charges 0.5–1% for its service, and the market sets the exchange rate for CRED tokens. What makes our lending solutions unique is that CRED will be available to purchase and sell on its own internal exchange. The lending risk is spread between all borrowers and lenders, whilst passing the interest earned on loans into the CRED market-driven valuation.

Will you implement a fiat exchange to buy crypto? Will I be able to pay with my VISA in Crypterium, and Crypterium will buy crypto at the best rate on an exchange?

Crypterium App will not just allow the fiat-crypto conversion, it will also use Crypterium SX algorithms to choose the best rate for you. Everything possible is done to ensure that the customer gets the best deal.

Are you going to offer a fiat bank account? Will the merchant be able to receive transactions without paying extra fees for moving the funds to his bank account?

Definitely yes. Crypterium is going to provide a fully-fledged banking experience to its users. The virtual cards we are going to issue can be used just as your physical fiat cards. This means you will be able to perform all the standard fiat transactions such as paying salaries.

As a bank, will you allow using fiat currencies and exchanging one fiat currency for another? This would be convenient for paying bills.

We’ve thought about it. But first, we would like to enter the market and get some feedback; then we can think of implementing new features. However, we’re going to offer an option to pay bills with crypto, and you won’t even have to convert your coins and tokens into fiat for that.

Will there be an interactive area in the app showing various stats, such as the number of CRPT burned or my transaction volume? This would be convenient for many purposes, including tracking my MLP status.

Yes, you are pretty much reading our thoughts. We are all for transparency, so you’ll definitely be able to see a lot of stats.

Earn monthly rewards by paying with Crypterium

Can you explain how exactly the MLP works? Is it related to the number of tokens you have or to the amount you spend within the group?

Our loyalty program launches in the beginning of 2019. Up to 30% of Crypterium’s transactional income will form the Monthly Loyalty Program Fund designed to stimulate users to make more transactions in our app and encourage the most active users. The ultimate cashback is determined by two factors: the loyalty group that you belong to (from Bronze to Platinum, depending on the amount of CRPT you have in your app wallet) and the amount of transactions made with Crypterium App. User’s cashback is proportional to the amount of transactions made within your loyalty group. If no transactions were made for the MLP monthly timeframe, there’ll be no cashback.

For the monthly loyalty program, how will income be calculated? What are all the ways for Crypterium to earn income?

Any payment system (Visa, Mastercard, WeChat, etc.) gets acquiring fees from merchants for processing transactions. They share this acquiring fee with the company that has issued the card used for the transaction. It’s called an interchange fee, and as we are issuing cards for Crypterium app users, we’re getting that fee. We also have small transactional fees that we add to the exchange rate when converting crypto. We use them to hedge against the price movements on the exchanges; we don’t have a goal to earn on them but sometimes we might have transactional income. We’re also developing our own infrastructure, and we’re planning to charge merchants a certain fee for using it. Up to 30% of Crypterium’s income will form the Monthly Loyalty Program.

Will there be a separate account, where CRPT tokens will be locked for the MLP fund?

Yes, there will be a separate account for our MLP Fund. A significant amount of tokens will be distributed once a month.

Will you have to store all your tokens in your wallet on the Crypterium App to receive the benefits of the Silver, Gold and Platinum levels?

Yes.

How does the burning process work in technical terms? How is it related to the MLP?

The process is determined by our smart contract. Once a transaction is processed, a fee equal to 0.5% of the value of the transaction in CRPT is automatically taken from the token holder’s account and burned as fuel. It’s not related to our MLP in any way, it’s just one of the features of CRPT token.

What are the limits for the users that hold 10,000 or more tokens?

Dividing token holders into groups is only for the purpose of the loyalty program. The limits will only depend on the legal regulations in your country, not on the number of tokens you own. *** **Thank you for your ever-growing support for Crypterium! We are always glad to get feedback from our community. You are welcome to post your questions and suggestions in our official [subreddit](reddit.com/r/crypterium_com/)**