Security

Security is the foundation. A financial product that isn't secure isn't a product. Encrypto's security model is built on defense in depth — multiple independent layers of protection, so no single failure can compromise user funds or data.

Security Architecture

┌─────────────────────────────────────────┐
│              User Layer                  │
│  Social login → Session token → Wallet  │
└────────────────┬────────────────────────┘
                 │
┌────────────────▼────────────────────────┐
│           Wallet Layer                   │
│  Managed custody via Privy → Key        │
│  material secured independently         │
└────────────────┬────────────────────────┘
                 │
┌────────────────▼────────────────────────┐
│         Application Layer                │
│  API authentication → Rate limiting →   │
│  Input validation → Encrypted at rest   │
└────────────────┬────────────────────────┘
                 │
┌────────────────▼────────────────────────┐
│        Infrastructure Layer              │
│  TLS everywhere → Isolated environments │
│  → Secrets management → Audit logging   │
└─────────────────────────────────────────┘

Core Principles

Managed Custody with a Path to Self-Custody

Encrypto currently uses a managed custody model through Privy. Privy manages wallet key material independently — Encrypto cannot access or move user funds. Users authenticate through social login, and their wallet is recoverable without seed phrases.

We may explore additional custody options in the future. See Custody Model for details.

Defense in Depth

Every layer of the stack has independent security controls:

• Transport: TLS 1.3 for all connections. HSTS enforced. Certificate pinning on mobile.
• Authentication: Privy-managed sessions with hardware-backed key storage on mobile devices.
• Authorization: Role-based access control. Admin operations require separate API keys injected server-side.
• Data: Encrypted at rest (AES-256). PII is stored separately from financial data.
• Infrastructure: Environment isolation. Secrets managed through platform-level vaults, never in code.

Minimal Attack Surface

We deliberately minimize the surface area that could be compromised:

• No browser extensions (embedded wallet, not MetaMask-style)
• No seed phrases (managed custody through Privy)
• No direct smart contract interaction by users (Liquidity Engine handles all on-chain execution)
• No API keys in client code (server-side proxy injects credentials)

Incident Response

In the event of a security incident:

1. Affected systems are isolated within minutes
2. Users are notified through push notification and email
3. Card transactions are paused if card infrastructure is affected
4. Post-incident analysis is published publicly

We take security incidents seriously and believe in transparency. If something goes wrong, users will know about it quickly and understand what happened.