octagon-checkSecurity & Reliability

Security & Reliability

Zoryu Trade is designed with a clear security boundary: the platform never takes custody, never signs transactions, and never acts as a financial intermediary. All security considerations are derived from this principle and reinforced through architectural decisions at every layer of the system.


Non-Custodial Security Model

Zoryu operates under a strict non-custodial model.

  • Private keys are never collected, stored, or transmitted

  • All transactions are signed directly by the user’s connected wallet

  • No internal balances, credits, or off-chain settlement logic exist

This approach significantly reduces systemic risk by eliminating single points of failure related to asset custody. Zoryu’s role is limited to coordination, analysis, and execution routing, not asset management.


Backend Trust Boundary

The backend acts as the authoritative source of system state, but not of asset ownership.

Backend responsibilities include:

  • Signal and position lifecycle tracking

  • Market data normalization

  • Performance metric calculation

  • Execution coordination

Backend responsibilities explicitly exclude:

  • Key management

  • Transaction signing

  • Fund custody

  • Off-chain execution

This separation ensures that even a backend compromise cannot directly result in asset loss.


Input Validation & Data Integrity

All external inputs are validated before entering the system state.

  • API payloads are validated using strict schemas

  • Trade parameters are sanitized and bounded

  • Signal outputs are validated before persistence

  • Position state transitions follow deterministic rules

This prevents malformed data, inconsistent state transitions, and unintended execution behavior.


Execution Safety

Execution safety is enforced through explicit constraints rather than implicit assumptions.

  • Slippage tolerance is user-defined and enforced at execution time

  • Quotes are retrieved prior to transaction construction

  • Transactions must be explicitly approved and signed by the user

  • Execution results are verified using on-chain transaction signatures

Zoryu does not auto-execute trades without user confirmation, ensuring that all execution remains intentional and transparent.


Environment & Secrets Management

Sensitive configuration values are isolated from application code.

  • API keys are stored in environment variables

  • No secrets are exposed to the frontend

  • Separate environments for development and production

  • Configuration files exclude sensitive data by default

This reduces the risk of accidental key exposure and enforces operational hygiene.


Reliability & System Resilience

Zoryu is designed to degrade gracefully under partial failure.

  • Frontend remains functional during transient backend delays

  • Cached market data prevents unnecessary request spikes

  • Background jobs handle price updates and position monitoring

  • Idempotent operations prevent duplicated state transitions

This ensures consistent system behavior even under fluctuating network conditions or temporary service disruptions.


Threat Model (High-Level)

Zoryu explicitly considers and mitigates the following threat categories:

  • Custodial risk → eliminated by design

  • Execution manipulation → mitigated through on-chain verification

  • State inconsistency → mitigated via backend authority

  • Signal spoofing → mitigated through schema validation

  • Frontend desync → mitigated through server-driven state

Threats outside Zoryu’s control, such as wallet security or blockchain-level issues, remain the responsibility of the user and the underlying network.

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