# Security Architecture ### Security Architecture #### Smart Contract Audits All Venzo smart contracts undergo multiple rounds of security audits by leading blockchain security firms before deployment. The audit process includes: * **Formal Verification:** Mathematical proofs that critical contract invariants hold under all possible execution paths. * **Manual Code Review:** Line-by-line review by experienced security researchers to identify logic errors, reentrancy vulnerabilities, and access control issues. * **Automated Analysis:** Deployment of static analysis tools (such as Slither and Mythril) and fuzz testing frameworks to discover edge cases. * **Economic Modeling:** Simulation of adversarial scenarios to ensure the vault's economic model is robust against manipulation. #### Custody Framework Venzo employs a hybrid custody model that combines the transparency of on-chain smart contracts with the security of institutional-grade custodians: **On-Chain Custody:** For purely on-chain strategies (such as DeFi lending and liquidity provision), assets remain in smart contracts at all times. Multi-signature wallets (requiring M-of-N signatures from independent key holders) are used for all administrative functions, including strategy parameter updates and emergency withdrawals. **Off-Chain Custody:** For strategies that require interaction with centralized exchanges (such as delta-neutral hedging) or traditional financial markets (such as RWA vaults), Venzo partners with regulated institutional custodians including Copper and Ceffu (formerly Binance Custody). These custodians provide: * Segregated account structures that isolate Venzo user funds from the custodian's own assets * Insurance coverage against theft, loss, and operational failures * SOC 2 Type II compliance and regular third-party audits * Multi-party computation (MPC) key management that eliminates single points of failure #### Oracle Integration Venzo integrates with decentralized oracle networks to ensure accurate and tamper-proof price feeds for all vault operations. Oracle data is used for: * NAV calculations and share price updates * Hedge ratio adjustments in delta-neutral strategies * Liquidation triggers and risk parameter monitoring * Cross-chain asset valuation Multiple oracle sources are aggregated using a median-based approach to mitigate the risk of any single oracle being compromised or providing stale data. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://venzofinance.gitbook.io/venzofinance-docs/security-architecture.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.