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Disaster Recovery · ROI Model
Revenue Impact Analysis
Unlock the value of
Unlock the value of
Disaster Recovery
Adjust the sliders to model your gross revenue opportunity — and see how wallet loss and locked assets compound over time without DR in place.
Model assumptions
Active wallet base1,000,000
50,00020,000,000
DR adoption rate5%
1%25%
Annual revenue per protected wallet$10
$5$50
Avg. wallet balance (USD)$5,000
$500$50,000
Protected wallets
—
enrolled users
Gross annual revenue
—
before any cost deduction
Assets protected
—
aggregate wallet value
DR-eligible users
—
est. 60% of base
Revenue breakdown
3-year revenue projection
| Metric | Year 1 | Year 2 (+30%) | Year 3 (+30%) |
|---|
Inactive wallet predictor — without DR in place
Without a disaster recovery solution, wallets become permanently inaccessible over time through lost keys, forgotten passwords, death, and device failure. Adjust the loss rate and horizon to project the cumulative impact on your user base.
Annual wallet loss rate2.0%
0.5%5%
Projection horizon5 years
1 yr10 yrs
Wallets lost by yr 5
—
permanently inaccessible
Value locked away
—
at avg. wallet balance
% of base lost by yr 5
—
cumulative compounding loss
Research assumptions
35% of all crypto holders have lost access to a wallet at some point (Oobit / CloudResearch, 2026, n=1,000). Of those, 31% never recovered their funds — implying ~10.9% permanently lose access over their lifetime.
Annual loss rate modelled at 0.5–5%. At 0.5–1% this aligns with Chainalysis/BitGo estimates. At 2% it matches industry lifetime loss rates annualised over 5–10 years.
Top causes: forgotten passwords (33%), lost seed phrase (21%), lost 2FA (20%) — Oobit 2026. Only 15% of users have ever tested their recovery process.
60% of users say fear of losing access has already changed how they invest (Oobit 2026) — a churn multiplier beyond direct wallet loss.
Compound decay: lostyr = activeyr−1 × rate; activeyr = activeyr−1 − lostyr. Sources: Oobit / CloudResearch (2026), Chainalysis (2024–25), BitGo Research.
Lost revenue from locked assets
When wallets become permanently inaccessible, providers lose all future revenue those users would have generated. This quantifies the ongoing revenue drag based on the loss projection above.
Lost wallets (yr 5)
—
permanently inaccessible
Assets locked away
—
at avg. wallet balance
Annual revenue lost
—
ARPU × wallets lost
3-yr revenue drag
—
compounding lost ARR
% base lost (yr 5)
—
cumulative wallet loss
Recoverable with DR
—
est. 80% of lost wallets
Year-by-year revenue drag
How this is calculated
Lost wallets flow from the inactive wallet predictor above — same compound decay, same sliders.
Assets locked = cumulative lost wallets × avg. wallet balance. Permanently inaccessible — removing liquidity from your platform entirely.
Annual revenue lost = cumulative lost wallets × ARPU. The 3-yr drag sums each year's shortfall as the lost base compounds.
Recoverable with DR: ~80% of wallet losses are preventable (forgotten passwords, lost seed phrases, lost devices). ~20% require additional estate-planning features.
What this means for your business
Based on your current model settings
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You have a significant untapped revenue stream sitting in your existing user base
With — wallets eligible for DR at —/yr, your platform could be generating — in gross annual revenue it currently isn't. By Year 3, that compounds to —. This is recurring, high-margin revenue from users you already have — no new acquisition cost required.
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Without DR, your active user base is silently shrinking every year
At a — annual loss rate, you'll lose an estimated — wallets over — — that's — of your entire base gone permanently. These aren't users who churned to a competitor. They're gone, along with every dollar of revenue they would have generated.
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Locked assets are a growing drag on your platform's liquidity and revenue
Those lost wallets represent — in assets permanently removed from circulation on your platform. The annual revenue gap reaches —/yr by the end of the projection — growing every year without intervention. Over 3 years, the cumulative drag is —.
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DR pays for itself many times over — and protects what you've already built
An estimated — of those lost wallets are recoverable with a DR solution in place. Preventing that loss doesn't just protect your users — it protects your revenue base, reduces churn, and increases the lifetime value of every wallet on your platform.
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DR is a platform differentiator, not just a risk mitigation tool
60% of crypto users say fear of losing access has already changed how they invest — meaning your total addressable engagement is constrained by the absence of a safety net. Providers who embed DR become the trusted choice. CoinCover's infrastructure lets you offer this today, without building it yourself.
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Ready to turn these numbers into a tailored proposal? CoinCover works with wallet providers, exchanges, and custodians to implement DR as a live revenue-generating feature. Get in touch to discuss a commercial model built around your specific user base and platform goals.