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Security & Risk Management

Security & Risk Management

LumiVault is built with a security-first architecture, combining smart contract resilience, real-time reserve verification, and regulatory compliance to protect users and ensure institutional-grade integrity in gold-backed DeFi.


Smart Contract Protections

LumiVault’s smart contracts — deployed on Ethereum Layer 2 — are engineered with multiple security layers to eliminate vulnerabilities and unauthorized control:

  • Multi-signature Admin Controls: Minting, burning, and gold reserve updates require approval from multiple trusted parties.

  • Immutable Mint/Burn Logic: Smart contracts enforce strict 1:1 PAXG backing. Over-minting or inflation is not possible.

  • No Staking or Reward Logic: The protocol avoids slashing risks, lock-ins, or gamified incentives. Instead, tokens serve as real-asset claims redeemable via $PAXG.


Reserve Proof & Transparency

  • Real-time On-Chain Proof-of-Reserve (PoR): Reserves are tracked and published in real time through decentralized oracles, fully integrated into the Dapp.

  • Physical Gold in Custody: Backing reserves are stored in insured, multi-signature vaults and tokenized via Paxos Gold (PAXG).

  • Third-party Audits: All smart contracts undergo independent audits before mainnet launch. Reserve audits and Proof-of-Audit (PoA) records are uploaded on-chain for full transparency.


Regulatory Compliance

LumiVault enforces robust compliance standards to meet global regulatory expectations:

  • KYC/AML: Required for large-scale and institutional users to prevent misuse and illicit finance.

  • Regulatory Readiness: LumiVault operates with a future-proof framework to support potential licensing and institutional onboarding.


Summary

LumiVault sets a new benchmark in tokenized real-world asset (RWA) security by eliminating staking risk, maintaining full transparency of reserves, and enforcing gold-backed issuance only. Its secure, compliant, and real-asset-anchored architecture ensures $LVT remains a trustworthy digital instrument for both retail and institutional participants.

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