Custodial risk encompasses potential security breaches or losses related to the ownership and safeguarding of assets. This includes risks associated with the loss, misplacement, or unauthorized acquisition of private keys, which control our smart contract-backed ecosystem. The irreversible nature of blockchain transactions amplifies these risks. Additionally, custodial risk pertains to traditional assets such as physical securities, documents, and other valuable items requiring protection. Ensuring the security and integrity of these assets involves safeguarding against unauthorized access, theft, and accidental loss, making robust security measures essential. Endaoment is committed to mitigating these risks through stringent custodial procedures, including multi-factor authentication, regular compliance checks, and advanced security mechanisms applicable to assets under our purview.
Endaoment is dedicated to maintaining secure and hardened accounts accessible only to authorized users and administrators. We manage custodial risks through the implementation of multi-factor authentication both on and off the blockchain, regular Know Your Customer (KYC) checks, and other security enhancement mechanisms. Compliance with this policy is mandatory for all employees, contractors, board members, and representatives acting on behalf of Endaoment.
Implement strict access controls to ensure that only authorized personnel can access sensitive assets. This includes the use of multi-factor authentication and role-based access controls.
Encryption and Secure Storage
Utilize advanced encryption techniques for both digital and physical assets. Ensure that private keys and other critical information are stored securely, minimizing the risk of unauthorized access.
Ensure that private keys are generated, stored, and managed using industry-standard security practices. Access to private keys is restricted to authorized personnel only.
Secure Asset Transfer
Establish secure protocols for the transfer of assets, both onchain and offchain, to prevent unauthorized transactions and ensure the integrity of transfers.
Ensure that critical procedures and systems have segregated duties to prevent any single individual from having full control over any process without oversight.
Approval Processes
Maintain segregated claim diligence and approval processes to uphold checks and balances.