# Custody Security

### Hybrid Custody Model

Venzo employs a hybrid custody model that combines the transparency of on-chain smart contracts with the security of institutional-grade custodians.

On-Chain Assets. For purely on-chain strategies, assets remain in audited smart contracts at all times. Multi-signature wallets are used for all administrative functions. Key management follows industry best practices, including hardware security modules (HSMs), geographic distribution of key holders, and regular key rotation.

Off-Chain Assets. For strategies requiring interaction with centralized exchanges or traditional financial markets, Venzo partners with regulated institutional custodians:

<table data-header-hidden><thead><tr><th width="186.76953125">Custodian</th><th width="204.3515625">Regulation</th><th>Key Features</th></tr></thead><tbody><tr><td>Copper</td><td>UK FCA Registered</td><td>ClearLoop off-exchange settlement, MPC key management</td></tr><tr><td>Ceffu (formerly Binance Custody)</td><td>Multiple jurisdictions</td><td>Segregated accounts, insurance coverage, SOC 2 Type II</td></tr></tbody></table>

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, and multi-party computation (MPC) key management that eliminates single points of failure.

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