Security & Audits

↝ Decentralized Architecture

Security is the foundation of CypherFund. Every smart contract, model interaction, and on-chain process is designed to operate within a zero-trust architecture — minimizing attack vectors and ensuring complete transparency at every layer of the system.

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↝ Smart Contracts & Audit Roadmap

All core CypherFund contracts are written in Solidity and Vyper, adhering to modern best practices for security and gas optimization. Contracts are structured modularly to isolate risk and simplify upgrades where applicable.

Security principles include:

• Immutable core logic: key parameters like fees, lock duration, and performance structure are hardcoded.

• Limited surface exposure: external calls and permissions are minimized to prevent privilege escalation.

• Fail-safe functions: include time-locks, circuit breakers, and emergency withdrawal mechanisms under strict governance conditions.

• Audited architecture: all contracts undergo independent third-party audits before deployment.

Every change to production contracts follows a multi-stage review pipeline involving automated verification, manual audit, and real-time monitoring during deployment.

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↝ Managing AI & DeFi Risks

While CypherFund’s intelligence operates off-chain, its decision signals directly affect on-chain capital movement. To ensure model safety and prevent unforeseen behavior, strict safeguards are in place:

• Bounded trade execution: AI models cannot bypass maximum position limits or liquidity thresholds.

• Sanity checks: all trade signals are validated on-chain by deterministic constraints before execution.

• Model drift monitoring: performance metrics and prediction distributions are constantly compared to historical baselines.

• Failover systems: if anomalies or inconsistencies are detected, the system automatically reverts to a risk-neutral fallback state.

The objective is to combine AI adaptability with DeFi predictability, ensuring no unexpected execution occurs due to algorithmic variance or malicious interference.

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↝ On-Chain Transparency

All fund operations are fully verifiable on BNB Chain. Users can independently confirm:

• Deposits and redemptions

• Fund NAV evolution

• Rebalancing events and transaction hashes

• Performance fee collection

• Smart contract parameters and state variables

CypherFund introduces a “Proof-of-Execution” layer, where every transaction initiated by the AI system emits an event log, enabling on-chain auditability in real time.