Security

Security is paramount in DeFi protocols. This document outlines Stasis's security measures, best practices for users, and how to protect your funds while using the protocol.

Protocol Security Measures

Smart Contract Security

Code Audits

  • Professional Audits: Conducted by reputable security firms

  • Multiple Reviews: Independent security assessments

  • Public Reports: Audit results published transparently

  • Continuous Monitoring: Ongoing security assessments

Development Best Practices

// Security features implemented:
- ReentrancyGuard: Prevents reentrancy attacks
- Pausable: Emergency stop functionality
- Access Control: Role-based permissions
- Input Validation: Comprehensive parameter checking
- Safe Math: Overflow/underflow protection

Testing Framework

  • Unit Tests: Comprehensive test coverage (>95%)

  • Integration Tests: End-to-end scenario testing

  • Fuzzing: Automated testing with random inputs

  • Formal Verification: Mathematical proof of correctness

Operational Security

Multi-Signature Controls

Admin Functions:
- 3/5 Multisig for critical operations
- 24-hour timelock for parameter changes
- Emergency pause capabilities
- Distributed key management

Risk Management

  • Position Limits: Maximum exposure per asset

  • Leverage Limits: Conservative leverage usage

  • Liquidity Buffers: Reserves for withdrawals

  • Delta Monitoring: Continuous risk assessment

Infrastructure Security

  • Secure Servers: Hardened infrastructure

  • Encrypted Communications: All data transmission secured

  • Access Controls: Strict permission management

  • Monitoring Systems: 24/7 security monitoring

User Security Best Practices

Wallet Security

Private Key Protection

  • Never Share: Private keys or seed phrases

  • Secure Storage: Hardware wallets recommended

  • Backup Safety: Multiple secure backup locations

  • Regular Updates: Keep wallet software updated

Wallet Recommendations

Recommended Wallets:
✅ MetaMask (browser extension)
✅ Coinbase Wallet (mobile/browser)
✅ Ledger (hardware wallet)
✅ Trezor (hardware wallet)
✅ WalletConnect compatible wallets

Transaction Security

Before Transacting

  • Verify URL: Always check you're on the official site

  • Check Contract: Verify contract addresses match documentation

  • Review Details: Double-check all transaction parameters

  • Gas Settings: Use recommended gas settings

During Transactions

Security Checklist:
□ Correct contract address
□ Correct function being called
□ Correct amount specified
□ Sufficient gas for transaction
□ No suspicious additional operations

After Transactions

  • Save Records: Keep transaction hashes

  • Verify Completion: Confirm expected results

  • Monitor Balances: Check for any anomalies

Phishing Protection

Common Attack Vectors

  • Fake Websites: Lookalike domains

  • Social Media: Impersonation accounts

  • Email Phishing: Fake support emails

  • Discord/Telegram: Fake admin messages

Protection Strategies

Red Flags:
❌ Urgent action required
❌ Requests for private keys
❌ Too-good-to-be-true offers
❌ Pressure to act quickly
❌ Unofficial communication channels

Verification Methods

  • Official Channels: Only use verified links

  • Domain Checking: Verify exact URL spelling

  • SSL Certificates: Check for valid HTTPS

  • Community Verification: Ask in official channels

Risk Assessment

Smart Contract Risks

Code Vulnerabilities

  • Risk: Bugs in smart contract code

  • Mitigation: Professional audits, testing, formal verification

  • User Action: Start with small amounts, monitor for issues

Upgrade Risks

  • Risk: Malicious or buggy upgrades

  • Mitigation: Timelock delays, multisig controls, community governance

  • User Action: Stay informed about protocol changes

Strategy Risks

Delta-Neutral Strategy

  • Risk: Strategy may not perform as expected

  • Mitigation: Continuous monitoring, risk limits, diversification

  • User Action: Understand strategy mechanics, monitor performance

Funding Rate Dependency

  • Risk: Negative funding rates reduce returns

  • Mitigation: Dynamic position sizing, risk management procedures

  • User Action: Understand funding rate mechanics

External Dependencies

Hyperliquid Exchange

  • Risk: Exchange downtime or issues

  • Mitigation: Diversification plans, emergency procedures

  • User Action: Understand exchange dependency

Oracle Risks

  • Risk: Price feed manipulation or failure

  • Mitigation: Multiple oracle sources, circuit breakers

  • User Action: Monitor for unusual price movements

Liquidity Risks

Withdrawal Liquidity

  • Risk: Large withdrawals may require time

  • Mitigation: Liquidity buffers, position management

  • User Action: Plan large withdrawals in advance

Market Liquidity

  • Risk: Low liquidity during market stress

  • Mitigation: Conservative position sizing, emergency procedures

  • User Action: Understand market conditions

Emergency Procedures

Protocol Emergency Response

Pause Mechanism

Emergency Triggers:
- Smart contract vulnerabilities discovered
- Extreme market conditions
- Oracle failures
- Exchange issues

Response Procedures

  1. Immediate Pause: Stop new deposits/withdrawals

  2. Assessment: Evaluate situation and risks

  3. Communication: Inform users via official channels

  4. Resolution: Implement fixes or mitigations

  5. Resume: Restart operations when safe

User Emergency Actions

If You Suspect Issues

  1. Stop Transactions: Don't make new deposits

  2. Verify Information: Check official channels

  3. Document Everything: Save transaction records

  4. Contact Support: Use official channels only

  5. Consider Withdrawal: If concerns persist

Emergency Withdrawal

  • Process: Same as normal withdrawal

  • Priority: Large holders may need to coordinate

  • Timeline: Depends on vault liquidity

  • Communication: Stay updated via official channels

Incident Response

Reporting Security Issues

How to Report

Security Contact:
- Email: security@stasis.finance
- Bug Bounty: [Program details]
- Responsible Disclosure: 90-day timeline

What to Include

  • Detailed Description: Clear explanation of issue

  • Reproduction Steps: How to reproduce the problem

  • Impact Assessment: Potential severity and scope

  • Supporting Evidence: Screenshots, transaction hashes

Bug Bounty Program

Scope

  • Smart contract vulnerabilities

  • Frontend security issues

  • Infrastructure vulnerabilities

  • Economic attack vectors

Rewards

Severity Levels:
- Critical: $10,000 - $50,000
- High: $5,000 - $10,000
- Medium: $1,000 - $5,000
- Low: $100 - $1,000

Security Monitoring

Real-Time Monitoring

Automated Systems

  • Transaction Monitoring: Unusual activity detection

  • Balance Tracking: Unexpected balance changes

  • Performance Metrics: Strategy performance anomalies

  • External Monitoring: Third-party security services

Alert Systems

Alert Triggers:
- Large withdrawals (>5% of vault)
- Unusual transaction patterns
- Performance deviations
- External security warnings

Community Monitoring

User Vigilance

  • Report Anomalies: Unusual behavior or results

  • Share Information: Help other users stay safe

  • Verify Claims: Don't spread unverified information

  • Stay Informed: Follow official announcements

Community Resources

  • Official Discord: Real-time community discussion

  • Security Channel: Dedicated security discussions

  • Documentation: Always refer to official docs

  • Support Team: Available for security questions

Insurance and Protection

Protocol Insurance

Coverage Areas

  • Smart Contract Bugs: Code vulnerability protection

  • Economic Attacks: Protection against certain attack vectors

  • Operational Risks: Coverage for operational failures

Limitations

  • Market Risk: Not covered by insurance

  • User Error: Personal mistakes not covered

  • External Risks: Third-party failures may not be covered

User Protection

Self-Insurance Strategies

  • Diversification: Don't put all funds in one protocol

  • Position Sizing: Use appropriate allocation

  • Risk Assessment: Understand all risks involved

  • Exit Strategy: Have a plan for various scenarios

Third-Party Insurance

  • DeFi Insurance: Consider protocol insurance products

  • Coverage Options: Various providers available

  • Cost-Benefit: Weigh insurance costs vs. benefits

Security Updates

Staying Informed

Official Channels

  • Website: https://stasis.finance

  • Twitter: @StasisProtocol

  • Discord: Official server

  • Documentation: Regular updates

Security Announcements

  • Critical Updates: Immediate notification

  • Security Patches: Detailed explanations

  • Best Practices: Ongoing education

  • Threat Intelligence: Industry security news

Continuous Improvement

Security Roadmap

  • Regular Audits: Scheduled security reviews

  • Code Updates: Continuous improvement

  • Monitoring Enhancement: Better detection systems

  • User Education: Ongoing security awareness

For security concerns or questions, contact: security@stasis.finance

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