Security Risk Management
Risk Assessment
Last updated
Risk Assessment
Last updated
The security framework centers on Ceffu's MirrorX system, providing a critical bridge between custody and trading operations. This architecture enables trading execution without direct exchange deposits, significantly reducing counterparty risk while maintaining full market access. Through MirrorX, assets remain secure in Ceffu's MPC (Multi-Party Computation) custody as trading strategies execute across different asset managers.
MirrorX's infrastructure enables off-chain settlement on a T+1 basis, ensuring rapid position reconciliation while maintaining asset security. The system provides continuous monitoring of fund movements between asset managers, with all transfers requiring multi-signature authorization through the MPC protocol. This architecture enables efficient settlement while assets remain under institutional custody protection.
Elliptic's blockchain analytics infrastructure powers the system's AML compliance framework, providing advanced cryptocurrency surveillance and forensics capabilities. Elliptic processes over $2 trillion in transactions daily across multiple chains, enabling comprehensive risk assessment through pattern recognition and machine learning algorithms. Their extensive dataset, built since 2013, covers sanctioned entities, darknet markets, and high-risk wallets, providing institutional-grade transaction screening. This infrastructure enables real-time risk scoring and automated regulatory reporting while supporting the high-throughput requirements of MirrorX operations.
The MirrorX protocol integrates multiple security layers. The core MPC technology requires distributed authorization for asset movements, while the compliance framework monitors all transaction flows. This combination ensures both operational security and regulatory standards throughout all trading and settlement processes.
The infrastructure's foundation rests on MirrorX's separation of custody and trading functions. MPC-secured custody remains isolated from trading operations, while maintaining full exchange functionality through MirrorX's mirroring protocol. The compliance layer operates alongside this architecture, providing transaction screening and risk assessment without impacting operational efficiency. This structure enables institutional-grade security while preserving the flexibility needed for effective trading strategy execution.