Security

Risk management

To ensure the security and efficiency of the protocol, Neutrl implements:

• Custody Solutions – Off-exchange settlement via Copper Clearloop and Fireblocks mitigates counterparty risk.
• Exchange Diversification – Trading activity is distributed across Binance, OKX, and other major platforms to reduce exposure to exchange-specific failures.
• Redundancy Mechanisms – Liquidity pools and dynamic liquidity ratios guarantee seamless redemptions.
• Collateral Optimization – Systematic hedging minimizes liquidation risk.

• Funded by protocol fees, this pool provides a buffer against extreme market events.

Smart Contract Security

The owner of all Neutrl protocol contracts is secured by an MPC (Multi-Party Computation) wallet at 0x51De41ec06e779715d7FB71Ef83A736cFc903217. MPC wallets use advanced cryptography to distribute private key shares across multiple parties, requiring a threshold of signatures to authorize transactions without ever reconstructing the full private key in a single location.

While the wallet appears as an EOA (Externally Owned Account) on-chain rather than a traditional multisig contract, it operates with a 4/6 signature threshold, meaning any transaction requires approval from at least 4 out of 6 authorized signers.

Additionally, the MPC wallet enforces strict action policies that limit the scope of possible operations, restricting what transactions can be proposed and executed to prevent unauthorized or malicious activities.

Neutrl integrates Hypernative to monitor every transaction initiated by the admin wallet in real-time. This monitoring layer provides an additional security mechanism to detect and prevent phishing attempts, malicious transactions, or unauthorized access before they can affect the protocol.