Fund Security
Our assets are held by custodians and signing server
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Our assets are held by custodians and signing server
Last updated
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Our funds are primarily divided into two categories:
Funds frequently used for DEXs trading, which are stored in hot wallets and managed through our signing server.
As our AUM (Assets Under Management) grows, we will expand to CEXs trading, where funds will be held by professional custodians.
During the project's early stages, all trading activities are executed on-chain, making wallet security the primary focus for protecting user funds. Our trading strategies require frequent on-chain transactions, necessitating regular transaction signing operations. In this context, using a multi-signature wallet structure would be less efficient for our operational needs.
Therefore, we implement key sharding technology, where private key fragments are distributed among different individuals, ensuring no single person has access to the complete private key. During the initial server deployment, we conduct a key ceremony to perform key distribution and initialize the signing server.
Our signing server operates exclusively within our internal network (intranet). After the key ceremony, server access is restricted, and no one can log into the server except under extraordinary circumstances. Any system updates require the simultaneous presence of N authorized individuals to restart the signing server.
The signing server incorporates built-in validators that only authorize legitimate transactions, ensuring security through measures such as:
Restricting transfers to specific whitelisted addresses
Limiting minting operations to JLP tokens only
This validation mechanism ensures that the signing server only processes pre-approved transaction types.
We implement Shamir's Secret Sharing algorithm to split the private key into multiple shards, which are then distributed among different custodians. Shamir's Secret Sharing is an advanced cryptographic algorithm widely used in threshold signature schemes.
As our assets under management (AUM) grow, we will implement professional custody solutions to maximize security for our funds. We have already initiated discussions with several custodial service providers and plan to integrate their services in the future. Below is an introduction to these custody providers.
We will do our utmost to ensure the security of users' assets. Our team does not directly hold assets; all assets are stored with custodians who employ MPC (Multi-Party Computation) technology to ensure wallet security. Our team members cannot directly transfer user assets, and all assets are transparently verifiable on-chain.
More importantly, we do not store assets directly on exchanges. Instead, we use a mapping method to settle with exchanges at fixed intervals, maximizing the security of user assets. This technology is commonly referred to as Off Exchange.
Currently, we use custodians such as Copper, Ceffu, and Fireblocks. These are reputable custodians with proper licenses, ensuring safety and reliability. You can learn more about these technologies through their websites.
MPC wallets are an emerging wallet technology in the cryptocurrency space. MPC stands for "Multi-Party Computation.
Security: MPC wallets significantly enhance security by splitting the private key into multiple parts, which are stored separately in different locations or devices. This eliminates a single point of attack for obtaining the complete private key.
Decentralization: Unlike traditional centralized custodial wallets, MPC wallets achieve true decentralization, giving users complete control over their assets.
Convenience: Despite employing complex cryptographic techniques, MPC wallets are typically user-friendly, offering an experience similar to traditional mobile wallets.
Recovery Mechanism: Even if one or more key shards are lost, users can still regain access to their wallet as long as a sufficient number of shards remain.
Institutional Application: MPC technology is particularly suited for institutional-grade cryptocurrency management that requires high security and multi-user control.
Cross-chain Support: Many MPC wallets support multiple different blockchains and cryptocurrencies.
Custodians utilize this type of wallet to manage users' funds, ensuring the security of assets. Additionally, custodians employ a combination of cold and hot wallets to further guarantee the safety of funds.
Custodians typically provide Off-Exchange Settlement (OES) solutions, ensuring that funds do not flow directly into exchanges. Instead, exchanges settle with custodians at specific intervals. Consequently, even if an exchange encounters issues, our funds remain securely protected.
We provide a dashboard for users to monitor our account status in real-time.
