> For the complete documentation index, see [llms.txt](https://docs.usenest.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usenest.xyz/protocol-and-security/7.2-security-model.md).

# 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.