#Security Overview

Security is a core priority for Exolane. This section covers our security model, audits, and risk disclosures.

#Security Principles

#1. Non-Custodial by Design

✅ Users always control their funds
✅ Smart contracts enforce all rules
✅ No admin function can transfer user collateral
✅ No backend servers hold user funds
⚠️ Multisig can pause operations in emergencies
⚠️ Contracts use upgradeable proxies — see Governance section

#2. Transparent and Audited

✅ All contracts are verified on-chain
✅ Multiple independent audits completed
✅ Contracts publicly readable on Arbiscan

#3. Minimal Trust Assumptions

✅ Oracle-based pricing (Pyth Network)
✅ Deterministic settlement
✅ Rule-based liquidations
✅ Timelock on parameter changes

#Smart Contract Security

#Audit Status

Exolane's smart contracts have been audited by multiple firms:

See Audits for full details.

#Contract Verification

All deployed contracts are:

• Verified on Arbiscan
• Publicly readable
• Deterministic builds

#Contract Architecture

Contracts use upgradeable proxy patterns (TransparentUpgradeableProxy). This means:

• The protocol team can deploy new implementation contracts
• Upgrades are executed through the ProxyAdmin
• Core logic can be changed through governance
• All upgrades are visible on-chain via Arbiscan

#Governance & Access Control

#Role Hierarchy

┌─────────────────────────────────────────┐
│           ACCESS CONTROL                │
├─────────────────────────────────────────┤
│                                         │
│  TimelockController (7-day delay)       │
│  └── Protocol parameters                │
│  └── Market creation                    │
│  └── Extension registration             │
│                                         │
│  Multisig (Emergency)                   │
│  └── Pause functionality                │
│                                         │
│  Coordinator (per Market)               │
│  └── Risk parameters only               │
│                                         │
└─────────────────────────────────────────┘

#What Admins CAN Do:

#What Admins CANNOT Do:

#What Admins CAN Do (disclosure):

#Oracle Security

#Pyth Network

• Multiple independent price publishers
• Aggregated prices reduce manipulation risk
• On-chain verification of all prices

#Staleness Protection

• 40-second maximum price age
• Trading pauses if oracle stale
• Liquidations blocked on stale prices

#User Security

#Best Practices

1. Secure your wallet — Hardware wallet recommended
2. Verify URLs — Only use exolane.com
3. Check transactions — Review before signing
4. Use stop-losses — Limit potential losses
5. Understand leverage — Higher risk with higher leverage

#What Exolane Cannot Protect Against:

#Incident Response

#If Issues Occur:

1. Detection — Monitoring alerts or user reports
2. Assessment — Severity and scope analysis
3. Pause — Emergency pause if needed
4. Fix — Deploy fix or mitigation
5. Communication — Public disclosure

#Emergency Pause

The multisig can pause markets in emergencies:

• Prevents new positions
• Allows position closes (with pause exemption)
• Protects users from ongoing damage

#Security Resources

#Reporting Vulnerabilities

If you discover a security vulnerability:

1. Do NOT disclose publicly
2. Contact [email protected]
3. Provide detailed description and reproduction steps
4. Wait for acknowledgment before any disclosure

Responsible disclosure is rewarded.

#Summary