Theya for Advisors uses a 2-of-3 collaborative multisig model, ensuring clients maintain full control of their bitcoin while advisors provide security and support. This setup eliminates single points of failure, removes custodial risks, and ensures access even if a key is lost.
1. Understanding 2-of-3 multisig
A 2-of-3 multisig vault means that three keys exist, but only two are required to authorize transactions. This balances security, accessibility, and advisor involvement while ensuring the client retains full ownership of their bitcoin.
2. Key distribution in Theya for Advisors
In the standard setup, keys are distributed as follows:
Client key – Held by the client, ensuring full ownership.
Advisor key – Held by the advisor to assist with security and transaction co-signing.
Theya recovery key – Held by Theya, used only for assisted recovery if needed.
This ensures no single party has full control over the client’s bitcoin.
3. Why this structure benefits advisors and clients
Eliminates single points of failure
If a client loses their key, they can still recover funds with the help of their advisor and Theya.
Unlike single-key wallets, multisig ensures a structured recovery path.
Advisors can assist without taking custody
Advisors only hold one key and cannot move funds without client approval.
This removes compliance risks while keeping assets under client control.
Theya provides an optional safety net
The recovery key is only used when needed.
Clients and advisors can still recover funds without Theya if they hold two keys.
4. Alternative key setups
Advisor-Assisted 2-of-3 Vault (Without Theya)
For clients who prefer not to include Theya, an alternative 2-of-3 vault can be structured as:
Client holds two keys.
Advisor holds the third key (for recovery only).
Benefits:
Full client control with the advisor as a backup.
No third-party involvement beyond the advisor-client relationship.
Ideal for advisors who prefer not to involve Theya in custody.
User-Controlled 2-of-3 Vault (Without an Advisor)
For clients who prefer to exclude an advisor, an alternative 2-of-3 vault can be structured as:
User holds two keys.
Theya holds the third key (for assisted recovery only).
Benefits:
Regulatory compliance – Advisors avoid custody classification issues.
No key agent responsibilities – Advisors are not responsible for key management.
Minimized liability – No risk of disputes over key handling.
Streamlined advisory model – Advisors can focus on financial planning, not custody.
Appeals to self-sovereign clients – Full control with optional security guidance.
This setup is ideal for advisors who want to offer bitcoin self-custody solutions while avoiding direct key management responsibilities.
5. Fully customizable vault structures
While 2-of-3 is the standard, Theya allows for fully customizable vault setups. Advisors and clients can decide:
Who holds each key.
The preferred security structure.
How recovery and transaction approvals should be managed.
This flexibility ensures Theya for Advisors can meet diverse client security preferences.
6. Choosing the right setup for your practice
Advisors should consider:
Involvement level – Assisting only with recovery vs. active transaction management.
Client preferences – Some want full sovereignty, others prefer a recovery backup.
Long-term planning – Structuring vaults for inheritance and multi-generational wealth preservation.
Theya’s flexible key structure allows advisors to offer secure, scalable bitcoin custody that eliminates single-key risks while ensuring clients maintain full control.
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