Trust and Safety
At Leverage.art, the safety of our users is our top priority. We employ industry-leading security measures to ensure that your data, assets, and personal information are always protected.
Key Safety Features:
Margin & Liquidation logic: ensuring maintenance margin thresholds, partial liquidation flows, and penalty enforcement work without exploits (e.g., griefing liquidations, undercollateralization).
Oracle integration: verifying median-of-medians aggregation, outlier filtering, clamp rules, and pause mechanisms for oracle degradation.
Funding mechanism: validating skew-based and volatility-adjusted funding to avoid manipulation.
Vault contracts (ERC-4626): securing P2P LP deposits, reward distribution, and ensuring no re-entrancy or withdrawal manipulation.
Best Practices
Third-party audits by reputable firms with DeFi/NFT perp experience.
Continuous auditing: not just pre-launch, but with regular reviews after major updates.
Bug bounty program: incentivize white-hat disclosure of edge cases.
Formal verification (if feasible) of liquidation and funding settlement routines.
This ensures user trust in high-leverage markets where even small vulnerabilities can cascade into systemic losses.
Fund custody and protocol upgrades are controlled through multi-signature wallets.
Operational Security
Treasury management: protocol funds (fees, LP vault reserves, insurance fund) live in multi-sig wallets requiring approval from multiple signers before movement.
Upgrade control: any parameter changes (e.g., leverage caps, funding rate adjustments, oracle configs) pass through multi-sig approval, reducing single-actor risks.
Implementation on Base ETH
Gnosis Safe (or Safe{Wallet}) is the industry standard and natively supports Base.
Suggested config: 3-of-5 or 4-of-7 signatures, mixing internal team, trusted external advisors, and possibly DAO/community reps in the long term.
Timelock governance can layer on top: upgrade transactions are queued before execution, giving users time to react.
This provides resilience against compromised keys or rogue actors while maintaining operational agility.
Secure Trading Channels
High-leverage NFT perp markets need reliable trade execution without exposing users to exploits.
Execution Layer
Encrypted relayers: Trades sent from user clients to execution engines (or intents) use TLS-encrypted channels to prevent interception or tampering.
MEV protection: minimize front-running and sandwich attacks by leveraging private order flow solutions (e.g., Flashbots Protect, CoW Protocol intent routing) when routing to onchain pools.
On-chain settlement: all trades are ultimately verified and settled via smart contracts on Base, ensuring transparency and immutability.
Oracle Protection
Since NFT floors are noisy, secure transmission of Chainlink feeds, OpenSea API data, and AMM TWAPs is critical.
Your median-of-medians with clamping already acts as an anti-manipulation guardrail; audits should verify integrity of data handling and fallback logic.
User Safeguards
Session key trading: allow short-lived, scoped keys for trading without exposing primary wallet keys.
Two-factor confirmations: optional for large trades or withdrawals.
Together, this builds a secure execution environment that defends against both protocol-level exploits and user-targeted attack vectors.
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