> ## Documentation Index
> Fetch the complete documentation index at: https://docs.inkwell.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Security & Audits

> Revenue Marketplace security model, audit status, and third-party validation.

> **CONFIDENTIAL & PROPRIETARY © 2026 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.

<Note>
  **Core Principle: Trust Minimization**

  Every component is designed to minimize trust assumptions. On-chain transparency and cryptographic enforcement replace human discretion wherever possible.
</Note>

## 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.

<Note>
  **Technical Details Under NDA**

  The specific enforcement mechanism is proprietary. Institutional partners and auditors can request detailed technical documentation under NDA by contacting [security@inkwell.finance](mailto:security@inkwell.finance).
</Note>

### 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

<CardGroup cols={2}>
  <Card title="Smart Contract Audit" icon="magnifying-glass">
    **Status: Planned**

    Core Sui Move contracts under review by Sui-native security firm.

    * Enforcement logic
    * dWallet integration
    * Oracle price feeds
    * Loan lifecycle
  </Card>

  <Card title="Ika Integration Review" icon="network-wired">
    **Status: Planned**

    Architecture co-validated with Ika core team.

    * 2PC-MPC implementation
    * EdDSA signing flows
    * Cross-chain message passing
  </Card>
</CardGroup>

### 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:

<AccordionGroup>
  <Accordion title="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
  </Accordion>

  <Accordion title="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
  </Accordion>
</AccordionGroup>

### 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         |

<Note>
  **Legal Opinion**

  A formal legal opinion letter on the non-custodial structure is planned for Q1 2026 from a reputable crypto-native law firm.
</Note>

## Third-Party Validation

<CardGroup cols={2}>
  <Card title="Ika Core Team" icon="check-circle">
    Direct code review and architecture validation from Ika core engineers.
  </Card>

  <Card title="Sui Ecosystem" icon="cube">
    Native Move implementation following Sui best practices.
  </Card>
</CardGroup>

## Bug Bounty (Coming Soon)

A bug bounty program will be launched alongside mainnet deployment in Q2 2026.

| Severity | Reward Range        |
| -------- | ------------------- |
| Critical | \$10,000 - \$50,000 |
| High     | \$5,000 - \$10,000  |
| Medium   | \$1,000 - \$5,000   |
| Low      | \$100 - \$1,000     |

## Security Contact

**Report vulnerabilities:** [security@inkwell.finance](mailto:security@inkwell.finance)

Please include detailed reproduction steps and potential impact assessment.