What is a reserved balance?
Reserved balances reduce the ongoing risks of bank chargebacks and fraudulent payments passing through CoinJar, allowing more flexible daily deposit limits.
When making a new bank transfer into CoinJar, that amount is automatically added to your reserved balance - and must remain within your CoinJar for up to seven days. Once the reserved balance period has ended, those funds can be sent it to an external digital currency address, loaded onto CoinJar Swipe, or withdrawn to a linked bank account. This temporary period is determined automatically depending on account history and deposit amounts.
In the meantime, the deposited amount can be traded freely - buying and selling digital currencies is unrestricted. Once your reserved balance has reset, the amount in your CoinJar can be sent on to any external digital currency address, or withdrawn once more to your linked bank account.
Managing your reserved balance
You can check your reserved balance at any time - it is displayed with your Portfolio balance in the Accounts section of CoinJar. Like daily limits, reserved balances are on a rolling time frame - if your bank transfer arrives at 10:00am on a Monday, your reserve will automatically be cleared that same time the following Monday.
If you do foresee the need to make a digital currency payment to an external address, please ensure you consider the reserve period. Funds can always be stored within your CoinJar's Cash Account, Hedged Accounts, or digital currency accounts to be used later for immediate external payments.
Reserved balances do not affect incoming digital currency payments, or non-reversible payment methods such as Blueshyft. Any funds that enter your CoinJar via these payment methods can be withdrawn to your linked bank account or sent to an external address at any time - provided there is no significant price fluctuation as described below.
Because your reserved balance controls the digital currency amount you can send from your CoinJar to an external address, price fluctuation can affect your ability to make new Payments.
An example, assuming the reserved balance won't reset for seven days:
If you make a $1,000 Australian dollar deposit into your CoinJar, your reserved balance will remain at $1,000 for the next seven days. This will temporarily prevent you from sending $1,000 worth of digital currencies to an external blockchain address. In the meantime, you might convert that amount into $1,000 worth of bitcoin. If the bitcoin price were to increase by 50% during the seven day period, you’d now hold $1,500 worth of bitcoin. You could send out the difference between the current bitcoin valuation, and the amount of your current reserved balance - in this case $500 worth of bitcoin.
The same can be said for a decrease in valuation. If the bitcoin price were to decline drastically during this seven day period, it could potentially prevent you from sending out a bitcoin amount that has already been stored in your CoinJar.
Updated : 15 May 2018 (AS)
Reviewed : 15 May 2018 (AS)