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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