CONFIDENTIAL & PROPRIETARY © 2025 Inkwell Finance, Inc. All Rights Reserved. This document is for informational purposes only and does not constitute legal, tax, or investment advice, nor an offer to sell or a solicitation to buy any security or other financial instrument. Any examples, structures, or flows described here are design intent only and may change.
Security Philosophy
Inkwell is built on a zero-trust, non-custodial architecture where no single party—including Inkwell—ever has unilateral control over user funds.Core Principle: Trust MinimizationEvery component is designed to minimize trust assumptions. On-chain transparency and cryptographic enforcement replace human discretion wherever possible.
The Zero-Trust Enforcement Model
Inkwell uses a proprietary enforcement architecture built on Ika’s 2PC-MPC infrastructure. The system ensures that no single party can unilaterally move funds, while enabling automated enforcement of loan covenants.Technical Details Under NDAThe specific enforcement mechanism is proprietary. Institutional partners and auditors can request detailed technical documentation under NDA by contacting security@inkwell.finance.
Key Security Properties
| Property | Description |
|---|---|
| Non-Custodial | No single party holds full control over user funds |
| Threshold Security | Powered by Ika’s decentralized MPC network |
| No Single Point of Failure | Multi-party architecture eliminates single points of compromise |
| Cryptographic Enforcement | Loan covenants enforced through smart contract logic |
| Automated Execution | No manual intervention required for enforcement |
Audit Status
Smart Contract Audit
Status: PlannedCore Sui Move contracts under review by Sui-native security firm.
- Enforcement logic
- dWallet integration
- Oracle price feeds
- Loan lifecycle
Ika Integration Review
Status: PlannedArchitecture co-validated with Ika core team.
- 2PC-MPC implementation
- EdDSA signing flows
- Cross-chain message passing
Planned Audits
| Audit | Firm | Timeline | Status |
|---|---|---|---|
| Core Smart Contracts | TBD (Sui-native) | Q1 2026 | ⏭️ Planned |
| Ika Integration | Ika Core Team | Complete | ⏭️ Planned |
| Economic Model Review | TBD | Q2 2026 | ⏭️ Planned |
| Penetration Testing | TBD | Q2 2026 | ⏭️ Planned |
Legal & Regulatory Structure
Non-Custodial Classification
Inkwell’s architecture is designed to meet SEC 2025 No-Action Letter logic for non-custodial asset control:Why We're Non-Custodial
Why We're Non-Custodial
- No unilateral control: Neither Inkwell nor borrower holds full private key
- Ika TSS network: Decentralized threshold signature scheme provides second share
- Cryptographic guarantee: Funds cannot be moved without both parties’ participation
- No custody = No custody regulations: Avoids SEC/FinCEN custody requirements
Debt vs. Equity Structure
Debt vs. Equity Structure
- Fixed-cap repayments: All loans have maximum repayment (e.g., 1.3x principal)
- No governance rights: Lenders have no equity stake or voting power
- No perpetual revenue share: Obligation ends when cap is reached
- Designed to fail Howey, pass Reves: Structured as commercial lending, not securities
Regulatory Framework Alignment
| Framework | Alignment |
|---|---|
| SEC (US) | Non-custodial structure; debt-based fixed-cap loans |
| CIMA (Cayman) | Institutional custody standards via Ika TSS |
| MiCA (EU) | Compliant non-custodial wallet architecture |
Legal OpinionA formal legal opinion letter on the non-custodial structure is planned for Q1 2026 from a reputable crypto-native law firm.
Third-Party Validation
Ika Core Team
Direct code review and architecture validation from Ika core engineers.
Sui Ecosystem
Native Move implementation following Sui best practices.
Bug Bounty (Coming Soon)
A bug bounty program will be launched alongside mainnet deployment in Q2 2026.| Severity | Reward Range |
|---|---|
| Critical | 50,000 |
| High | 10,000 |
| Medium | 5,000 |
| Low | 1,000 |