7.2 - Security Model

nest is non-custodial: it doesn’t hold your wallet funds, and transactions are final (no reversals). That means your operational hygiene matters.

Team security

Operationally, the team uses:

• a 3-of-5 multisig for core protocol functions

• a separate treasury multisig for holdings

• dedicated signing keys + hardware authentication for multisig operations

This reduces single-key failure risk and separates operational controls from treasury custody.

What nest is designed to protect

• Conservative core design: keep the most sensitive logic (pricing + liquidity accounting) more immutable, with extensibility pushed to the edges (plugins/hooks).

• Constrained governance: veNEST coordination is designed to direct incentives/value routing — not to arbitrarily drain funds or override core protections.

• Operational security practices: multisig + key separation are referenced as core mitigations where admin controls exist.

What nest cannot protect you from

• Market outcomes: volatility, IL, slippage/price impact, adverse selection.

• Profitability: no guaranteed APR/returns.

• User error & phishing: wrong address, malicious approvals, fake sites, compromised devices.

User safety rules (non-negotiable)

• Team will never DM you first.

• Never share seed phrases/private keys.

• Bookmark official links, avoid lookalike domains.

• Be careful with approvals; revoke what you don’t need.