# Security & Compliance

## Security & Audit Strategy

Layers:

1. Internal Review & Static Analysis (Rust linting, property tests).
2. External Audit (Tier-1 Solana audit firm—multiple rounds). (Future – Est Q4 2025 to Q1 2026)
3. Formal Verification (select invariants: solvency, fee correctness).
4. Runtime Monitoring:
5. Real-time watchers.
6. Bug Bounty: Launch via platform (Superteam Earn) post-mainnet / before audit.
7. Key Management:
8. Multisig w/ hardware signers.
9. Upgrade time-lock (e.g., 48–72h). After audit.

 

## Regulatory & Compliance Considerations

* Jurisdictional Sensitivity: Some regions may treat tokenized managed strategies as regulated financial products.
* Never allow promise of returns;
* Disclaimers emphasizing risks.
* Optional KYC Modules (Phase 2+): For managers seeking to onboard regulated capital.
* Data Privacy: Minimal retention – we don’t hold sensitive data.
* Legal Counsel: Engage specialized counsel.

 

## Risk Analysis

Categories & Mitigations:

* Smart Contract Risk: Multiple audits, modular upgradability, time-lock governance.
* Oracle Risk: Diversified oracle sources, fallback safety values, deviation checks.
* Liquidity Risk: Vault withdrawal queues if underlying positions illiquid; provide transparency on settlement windows.
* Regulatory Risk: Progressive decentralization; clear disclaimers; compliance layer.
* Manager Malfeasance: Role caps, strategy parameter enforcement, public performance history.
* Market Risk: Fully borne by investors; disclosed via strategy classification.


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