> ## Documentation Index
> Fetch the complete documentation index at: https://docs.valefi.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Security

> How Vale protects your assets.

# Security

Security is foundational to Vale's design. This page explains the security model and the measures in place to protect your assets.

## Security Philosophy

Vale is built on a simple principle: **minimize trust assumptions**.

Rather than asking you to trust Vale with your funds, the protocol is designed so that:

* You maintain custody of your assets at all times
* Smart contracts are simple and audited
* All operations are transparent and verifiable on-chain

## Non-Custodial Architecture

Vale is fully non-custodial:

<AccordionGroup>
  <Accordion title="You Control Your Funds">
    Your deposited funds are represented by vault shares that you hold in your
    wallet. Vale cannot move, freeze, or access your funds.
  </Accordion>

  <Accordion title="No Admin Keys for Fund Movement">
    The Vale router contract has no admin functions that can move user funds.
    There's no "emergency withdraw" or similar function that could be abused.
  </Accordion>

  <Accordion title="Direct Wallet Custody">
    Vault shares go directly to your wallet when you deposit. You can interact
    with the underlying vault directly if needed.
  </Accordion>
</AccordionGroup>

## Smart Contract Security

### Minimal Design

The Vale router contract is intentionally simple:

* **Stateless**: Never holds user funds between transactions
* **Immutable**: Cannot be upgraded or modified after deployment
* **Limited Scope**: Only handles fee collection and vault routing
* **No Complex Logic**: Straightforward deposit/withdraw flows

A simpler contract means fewer potential vulnerabilities.

### Code Transparency

All Vale contracts are:

* Open source and publicly verifiable
* Deployed on Base with verified source code
* Available for anyone to audit or review

## Vault Security

Vale routes deposits to Morpho vaults, which have their own security measures:

### Audited Infrastructure

Morpho is one of the most audited protocols in DeFi:

* Multiple security audits from leading firms
* Formal verification of critical components
* Established track record with significant value secured

### Institutional Curation

Vale only routes to vaults managed by vetted institutional curators:

* Curators have professional risk management processes
* Vault strategies are designed with conservative parameters
* Track records are evaluated before integration

### Collateralization

Lending vaults require borrowers to post collateral:

* Loans are overcollateralized
* Liquidation mechanisms protect lender capital
* Oracle systems monitor collateral values

## On-Chain Verification

Every Vale operation is recorded on-chain:

<Steps>
  <Step title="Transaction Records">
    All deposits and withdrawals are blockchain transactions you can verify on
    any block explorer.
  </Step>

  <Step title="Vault Positions">
    Your vault share balance is publicly visible on-chain.
  </Step>

  <Step title="Attestations">
    Vale Points are recorded using the Ethereum Attestation Service (EAS),
    providing cryptographic proof of your participation.
  </Step>
</Steps>

## Risk Factors

While Vale implements significant security measures, you should understand the remaining risks:

### Smart Contract Risk

All smart contracts carry risk. Even audited contracts can have undiscovered vulnerabilities. Vale mitigates this through:

* Simple contract design
* Reliance on battle-tested Morpho infrastructure
* Open source code for community review

### Protocol Risk

The underlying Morpho protocol has its own risks:

* Oracle failures could affect liquidations
* Extreme market conditions could impact lending markets
* Protocol governance decisions could affect vault operations

### Market Risk

DeFi yields are variable:

* Interest rates fluctuate based on supply and demand
* Yields are not guaranteed
* Past performance doesn't guarantee future returns

## Security Best Practices

When using Vale, we recommend:

<CardGroup cols={2}>
  <Card title="Verify Contracts" icon="magnifying-glass">
    Always verify you're interacting with official Vale contracts. Check
    addresses against documentation.
  </Card>

  <Card title="Secure Your Wallet" icon="key">
    Use a hardware wallet or secure key management. Your vault shares are only
    as secure as your wallet.
  </Card>

  <Card title="Start Small" icon="coins">
    Consider starting with a smaller amount to familiarize yourself with the
    protocol before larger deposits.
  </Card>

  <Card title="Stay Informed" icon="bell">
    Follow Vale's official channels for security updates and announcements.
  </Card>
</CardGroup>

## Questions?

If you have security questions or want to report a vulnerability, reach out through official channels.

<CardGroup cols={2}>
  <Card title="FAQ" icon="circle-question" href="/faq">
    Common questions about Vale.
  </Card>

  <Card title="X" icon="x-twitter" href="https://x.com/ValeYield">
    Official announcements and updates.
  </Card>
</CardGroup>