It says “free auto withdrawals to Bitkey” does this mean they are charging for withdrawals to our own cold storage now?

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No

let me guess:

They probably cover your transaction fee on these withdrawals.

Because they batch all of them in a single transaction per day or so, they can do these pretty cheaply, and they can afford the waive any fees on these.

On other transfers, you're probably able to set higher priority when paying higher transaction fee (and they don't waive those)