Compliance and Security Measures

Compliance Measures

1. Chain Monitoring:

   • Zipper integrates with chain monitoring companies to prevent interactions with:

     • Sanctioned wallets (e.g., OFAC-listed addresses).

     • Wallets flagged for theft or illicit activity.

   • Transactions associated with such wallets are flagged and blocked during the wrapping or unwrapping process.

2. No Minimum Asset Requirements:

   • Users can wrap or unwrap any amount, as long as they cover the associated network fees. This ensures accessibility for all users.

3. Transaction Validation:

   • Zipper validates all transactions for security and legitimacy. If a transaction is flagged for compliance, it may experience slight delays while undergoing additional checks.

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Security Measures

1. Vault Protection:

   • Original assets are stored in multi-signature wallets, managed with a Trusted Execution Environment (TEE) protocol. This ensures no single entity can access the vault’s keys.

   • Vault operations are designed to assume all entities are potential bad actors, maximizing security.

2. On-Chain Transparency:

   • All transactions, including wrapping and unwrapping, are recorded on-chain. Users can verify the contract addresses for their zAssets and their corresponding original assets.

3. Redundancy Mechanisms:

   • Zipper incorporates safeguards to handle unexpected network or vault issues, ensuring uninterrupted operations and asset security.