# Trust & Compliance

## Built for Security

Sova is engineered to meet **high standards** of on-chain safety and operational security — while maintaining the permissionless, self-custodial nature of crypto.

This is achieved through a **multi-layer architecture** of smart contracts, role-based controls, and audited code.

***

## 1. Non-Custodial Architecture

Sova uses a **modular architecture** to separate control over assets and execution.

### Core Components

* **Conduit**: A smart contract that manages all asset transfers into and out of the vault — ensuring no funds move without proper authorization
* **Vault Contract**: Holds cbBTC deposits and issues svBTC tokens
* **Reporter**: Provides on-chain valuation updates

> **Self-Custodial**
>
> Users retain on-chain ownership of their svBTC tokens at all times. The underlying cbBTC is held in the vault smart contract, not by any third party.

***

## 2. Role-Based Access Control

Sova implements a strict **hierarchical role system** to minimize risks and prevent abuse:

| Role                  | Responsibilities                                          |
| --------------------- | --------------------------------------------------------- |
| **Protocol Admin**    | System-level permissions, governance control              |
| **Strategy Admin**    | Approves new strategies and asset integrations            |
| **Price Updater**     | Updates NAV via oracle reporters                          |
| **Strategy Operator** | Executes operational actions (e.g., liquidity management) |

> **Zero Unauthorized Access**
>
> Every smart contract interaction is permission-gated. Unauthorized access is blocked at the protocol level.

***

## 3. Audit Coverage

All core contracts powering Sova are **fully audited** and follow security best practices:

* **ERC4626 vault logic**
* **Deposit and withdrawal flows**
* **Reporter and price oracle integration**
* **Access control and role manager systems**

Audit reports: See [Security](https://github.com/SovaNetwork/sovaprime-ts/blob/main/docs/vaults/technical-resources/security.md) for full audit details.

***

## 4. Oracle & Valuation Integrity

Valuation updates are submitted by authorized roles only, using the **Reporter contract**.

### To ensure accuracy and prevent manipulation:

* **All NAV updates** are timestamped and versioned
* **Price changes** above a set deviation threshold are automatically rejected
* **Role-based permissions** restrict who can submit updates

***

## 5. Smart Contract Security

### Security measures include:

* **Audited contracts** by Omniscia
* **ERC-4626 standard** compliance for vault operations
* **Minimal proxy pattern** for gas-efficient, battle-tested deployments
* **Hook system** for extensible operational controls

> **Transparent Operations**
>
> All vault operations are on-chain and verifiable on BaseScan.


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