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.

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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.