Security

Introduction to Security at funkybit

At funkybit, we prioritize the security of our users' assets and data. Our architecture is designed to safeguard against various security threats while maintaining high performance and reliability. This section outlines the various security mechanisms we employ, including our innovative use of validity proofs and economic incentives to ensure the honesty and integrity of the platform.

Validity Proofs

• Purpose and Function: Validity proofs are integral to maintaining the integrity of transactions on funkybit. After every settlement epoch in the sequencer, a zk validity proof is generated to attest to the proper operation of the sequencer, ensuring that time/price priority is respected, that all orders are signed according to EIP-712, and that there are sufficient deposits to support all open orders. The settlement contract will verify this proof as part of settlement.

• Security Assurance: This mechanism ensures that all operations are transparent and verifiable, reducing the risk of malicious activities and errors in transaction processing.

Economic Security Measures

• Bond: a substantial bond from staked $FUNK tokens as a commitment to operating honestly. This bond acts as a form of insurance for users, ensuring that there are financial repercussions if the sequencer fails to process settlements.

Regular Security Audits and Compliance

• Audits: funkybit undergoes regular security audits conducted by reputable third-party security firms. These audits help identify and rectify potential vulnerabilities, ensuring our platform adheres to the highest security standards.

• Compliance: We stay up-to-date with global regulatory requirements and implement compliance measures to protect our users and operate legally in all jurisdictions we serve.