> For the complete documentation index, see [llms.txt](https://docs.zipper.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zipper.trade/security-and-compliance/compliance-mechanisms-1.md).

# 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.