# Compliance Mechanisms

#### TRM for Wallet/OFAC Screening

####

#### **Key Compliance Measures**

1. **Chain Monitoring Services**:
   * Zipper partners with chain monitoring companies to identify and block:
     * Transactions involving sanctioned wallets (e.g., OFAC-listed addresses).
     * Wallets flagged for theft, fraud, or other illicit activities.
   * These services provide real-time alerts and verification during the wrapping and unwrapping processes.
2. **Screening for Flagged Transactions**:
   * Every transaction is checked for compliance during the wrapping (zipping) and unwrapping (unzipping) workflows.
   * Transactions that fail compliance checks are flagged and prevented from completing.
3. **Transparency and User Notifications**:
   * If a transaction is flagged, users receive clear notifications explaining the issue and next steps.
   * The system prioritizes transparency to maintain user trust in the compliance process.
4. **No Extra Burden on Users**:
   * Zipper’s compliance mechanisms operate in the background, ensuring a seamless user experience without requiring additional input or steps.

***

#### **Why Compliance Matters**

* **For Users**:
  * Protects funds from interacting with flagged or malicious wallets.
  * Builds trust in the ecosystem by ensuring legitimate transactions.
* **For the Ecosystem**:
  * Prevents illicit activity, reinforcing the security and reputation of Fabric-based dApps and DeFi protocols.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.zipper.trade/security-and-compliance/compliance-mechanisms-1.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.