Security Model

🔗 Related: See Governance Model for governance security measures.

Overview

PHEME Protocol implements a comprehensive security model to protect the protocol, its users, and their assets through multiple layers of safeguards and controls.

Core Principles

• Defense in depth

• Least privilege access

• Transparent operations

• Regular audits

• Community oversight

Smart Contract Security

Contract Architecture

graph TD
    A[Proxy Admin] --> B[Implementation]
    B --> C[Governor]
    B --> D[Timelock]
    B --> E[Treasury]
    C --> F[Execution]
    D --> F
    E --> F

Security Features

1. Upgradability

   • Transparent proxy pattern

   • Timelock delays

   • Multi-sig control

   • Emergency pause

2. Access Control

   • Role-based permissions

   • Function modifiers

   • Guard checks

   • Event logging

3. Value Protection

   • Reentrancy guards

   • Integer overflow checks

   • Balance validations

   • Transfer limits

Governance Security

Proposal Protection

• Minimum token requirement (TBD)

• Review period

• Timelock delay (48h)

• Emergency cancellation

• Multi-sig oversight

Voting Security

interface VotingSecurity {
    quorum: "4% of total power",
    delay: "1 block",
    period: "7 days",
    execution: "timelock controlled",
    emergency: "guardian pause"
}

Treasury Security

• 5-of-7 multi-sig

• Spending limits

• Transaction delays

• Audit trail

• Regular reporting

💰 Economics: Check Token Economics for treasury management.

Operational Security

Infrastructure

• Distributed validators

• Redundant systems

• DDoS protection

• Regular backups

• Monitoring systems

Access Management

Role	Access Level	Requirements
Admin	Full	Multi-sig (5/7)
Operator	Limited	2FA + Hardware Key
Validator	Specific	Staked + Verified
User	Basic	Wallet Connection

Monitoring & Alerts

• 24/7 network monitoring

• Automated alerts

• Performance metrics

• Security events

• Validator health

Risk Management

Risk Categories

1. Smart Contract Risk

   • Code vulnerabilities

   • Logic errors

   • Upgrade failures

   • Integration issues

2. Economic Risk

   • Token volatility

   • Liquidity issues

   • Market manipulation

   • Flash loan attacks

3. Operational Risk

   • Infrastructure failure

   • Human error

   • Social engineering

   • Data loss

4. Regulatory Risk

   • Compliance issues

   • Legal changes

   • Jurisdiction conflicts

   • Reporting requirements

Mitigation Strategies

interface RiskMitigation {
    technical: [
        "Regular audits",
        "Penetration testing",
        "Bug bounties",
        "Code reviews"
    ],
    economic: [
        "Value caps",
        "Rate limits",
        "Circuit breakers",
        "Insurance funds"
    ],
    operational: [
        "Team training",
        "Process documentation",
        "Incident response",
        "Disaster recovery"
    ]
}

Incident Response

Response Process

1. Detection

   • Automated monitoring

   • User reports

   • Validator alerts

   • Security scans

2. Assessment

   • Impact analysis

   • Scope determination

   • Risk evaluation

   • Response planning

3. Mitigation

   • Emergency pause

   • Fix deployment

   • Communication

   • Recovery steps

4. Review

   • Incident analysis

   • Process improvement

   • Documentation update

   • Team training

Emergency Actions

• Contract pause

• Trading halt

• Emergency proposals

• Community alerts

• Asset protection

Audit & Compliance

Security Audits

• Quarterly smart contract audits

• Annual penetration testing

• Regular code reviews

• Community bug bounties

Compliance Framework

• KYC/AML integration

• Regulatory reporting

• Privacy compliance

• Data protection

Documentation

• Security policies

• Procedure guides

• Incident reports

• Audit findings

Community Security

User Protection

• Wallet safety guides

• Phishing protection

• Transaction verification

• Support channels

Education & Training

• Security best practices

• Risk awareness

• Incident reporting

• Safe trading guides

Communication

• Security updates

• Incident alerts

• Status reports

• Educational content

Tools & Resources

Security Tools

• Contract Explorer

• Transaction Scanner

• Risk Calculator

• Audit Dashboard

Emergency Contacts

• Security Team: [email protected]

• Bug Reports: [email protected]

• Support: [email protected]

• Emergency: [email protected]

Updates & Maintenance

The security model is continuously improved through:

• Threat analysis

• Vulnerability assessments

• Community feedback

• Industry standards

• Regulatory changes