# Neovestor Security Architecture

### **User Wallet Security**

**Tool**: **Web3Auth** (MPC + MFA + Social Logins)\
**Objective**: Secure, user-friendly wallet creation and authentication.

* **Seed Phrase-Free Design**:
  * Eliminates seed phrase vulnerabilities (e.g., phishing, loss) using **Multi-Party Computation (MPC)**. Private keys are split across devices/networks.
* **Multi-Factor Authentication (MFA)**:
  * Requires **two or more factors** (e.g., Google Authenticator, biometrics, email) for wallet access.
* **Social Logins**:
  * Users onboard via Google, Apple, or Discord, simplifying access while maintaining security.

***

### **Cold Storage & Asset Custody**

**Tool**: **Ledger Enterprise**\
**Objective**: Protect institutional and user funds in offline vaults.

* **Cold Vaults**:
  * 90%+ of assets stored offline in Ledger’s HSM (Hardware Security Module) devices.
* **Multi-Signature Approvals**:
  * Critical withdrawals require **3/5** signers from geographically dispersed custodians.
* **Audit Trails**:
  * All vault transactions logged on-chain and monitored in real time.

***

### **Treasury & Protocol Governance**

**Tool**: **Squads Protocol** (Solana Multi-Sig)\
**Objective**: Secure management of protocol funds and upgrades.

* **Multi-Signature Wallets**:
  * Treasury transactions require **3/5** approvals from core team and DAO delegates.
* **Programmable Policies**:
  * Time-locked transactions for governance proposals (e.g., 72-hour delay before execution).
* **Solana Integration**:
  * Native support for SPL tokens and seamless interaction with Solana programs.

***

### **Data Encryption & Network Security**

**Tool**: **SSL/TLS with AES-256**\
**Objective**: Protect data in transit and at rest.

* **End-to-End Encryption**:
  * All user data (KYC documents, transaction histories) encrypted with **AES-256**.
* **SSL/TLS Certificates**:
  * Secure APIs and web interfaces with HTTPS and HSTS protocols.
* **Key Management**:
  * AWS Key Management Service (KMS) for rotating encryption keys.

***

### **Cloud Infrastructure Security**

**Tool**: **AWS Cloud**\
**Objective**: Enterprise-grade security for backend infrastructure.

* **Network Security**:
  * VPC (Virtual Private Cloud) isolation, WAF (Web Application Firewall), and DDoS protection via AWS Shield.
* **Access Control**:
  * **AWS IAM** with role-based permissions and MFA for admin accounts.
* **Monitoring & Logging**:
  * **AWS CloudTrail** for audit trails and **GuardDuty** for threat detection.
* **Disaster Recovery**:
  * Multi-region backups and automated failover via AWS S3 and RDS.

***

### **Security Workflow Integration**

```plaintext
User Onboarding → Web3Auth (MPC/MFA) → AWS Cloud (Encrypted Data)  
                      ↓  
              Transaction Request → Squads Multi-Sig (3/5 Approval)  
                      ↓  
              Asset Movement → Ledger Cold Vault (Offline Storage)  
```

***

### **Risk Mitigation Alignment**

| **Risk**            | **Mitigation Tool**         | **How It Works**                                 |
| ------------------- | --------------------------- | ------------------------------------------------ |
| **Phishing/Theft**  | Web3Auth (MPC + MFA)        | No seed phrases; MFA blocks unauthorized access. |
| **Insider Threats** | Squads Protocol (Multi-Sig) | Requires 3/5 approvals for treasury actions.     |
| **Data Breaches**   | AWS KMS + AES-256           | Encrypts sensitive data end-to-end.              |
| **Exchange Hacks**  | Ledger Cold Storage         | Offline vaults prevent hot wallet exploits.      |

***

### **Compliance & Audits**

* **Third-Party Audits**:
  * Annual penetration testing of AWS infrastructure and smart contracts.
* **Regulatory Compliance**:
  * GDPR-ready data encryption (AWS KMS) and FATF Travel Rule adherence.
* **Transparency**:
  * Public audit reports and real-time dashboards for treasury balances.

***

### **Why This Stack?**

* **User Experience**: Social logins and MPC eliminate seed phrase friction.
* **Institutional Trust**: Ledger + Squads meet enterprise custody standards.
* **Scalability**: AWS ensures global, low-latency access while maintaining security.

***

**Audit Reports**: Available Soon