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In light of recent security incidents and the increasingly hostile environment, we have activated a dedicated treasury contract to further strengthen the system’s resilience. This contract is solely responsible for holding the entirety of the protocol’s treasury (TVL) and incorporates a circuit breaker mechanism governing fund outflows.
Specifically, if the total value locked (TVL) decreases by more than 3% within any rolling 24-hour period, the treasury contract will automatically halt all USDC outflows. In such an event, settlements are paused until the team reviews the underlying transactions and explicitly approves any increase in withdrawal limits via a multisignature process. The multisig signers are distributed across multiple geographies.
In rare circumstances, this may introduce delays to withdrawals. However, we believe this is a reasonable trade-off to ensure the safety of funds.
The perpetuals and vault contracts, which handle trading and business logic, no longer custody funds. All asset movements are routed exclusively through the treasury contract.
As a result, even in the event of a full system compromise, including bridges, oracle providers, or operator infrastructure, the maximum potential impact is limited to 3% of the TVL.
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