![[how-it-works.excalidraw.svg]] Syntropia prioritizes the security of user funds through a robust, multi-layered approach that integrates audited smart contracts, secure key management, strict operational policies, and proactive risk mitigation strategies. By leveraging advanced technologies like the Lagoon vault, Turnkey infrastructure, and Trusted Execution Environments (TEEs), alongside comprehensive risk analysis and circuit breaker mechanisms, Syntropia ensures user funds are protected at every stage of the investment process. ## 📥 Fund Deposit and Share Issuance ### Deposits/Withdrawals Funds are sent to a pending deposits vault powered by [Lagoon Finance](https://lagoon.finance/). Once deposits are settled by Syntropia’s asset managers, users receive share tokens. For stablecoin-based strategies, these tokens start at a value of $1 and appreciate as the strategy accumulates yield. Users can redeem their share tokens for underlaying assets (e.g., stablecoins) and with accumulated yield. ### Vault security The [Lagoon Finance](https://lagoon.finance/) vault, used solely for deposit and redemption processes, is audited by reputable firms, with audits available [here](https://docs.lagoon.finance/resources/audits). Asset managers interacting with vaults collectively manage over $100,000 in assets under management (AUM), ensuring operational credibility. > [!Funds are holded on Lagoon Finance temporary] > Deposits and withdrawals to/from the Lagoon Finance vault must be settled by asset managers every 48 hours. Only funds that are pending and not yet settled are temporarily held in the vault. > asd > After settlement happens, all funds are allocated to separate infrastructure ⬇️ ## 🔐 Fund Management with Turnkey Infrastructure Active funds allocated to Syntropia’s investment strategies are managed through [Turnkey](https://turnkey.com), a highly secure infrastructure. ### Strategy address – EOA After deposits are settled, funds are transferred to a strategy address (root account) managed by Turnkey. The private key for this account is stored in a Secure Enclave, an isolated environment inaccessible to both Turnkey and Syntropia. Users can verify this non-custodial key management [here](https://docs.turnkey.com/security/non-custodial-key-mgmt). ### Asset Manager Operations All operations by Syntropia’s asset managers require approval from at least one additional manager, ensuring no single point of failure. Operations are further restricted by policies that limit interactions to whitelisted protocols, adding an extra layer of protection against unauthorized or risky actions. ## 🚨 Circuit Breakers: Real-Time Risk Mitigation Syntropia’s flagship feature is its circuit breaker software, designed to detect and respond to adverse events, such as stablecoin depegs or protocol hacks, to safeguard user funds. ### Proactive Detection Circuit breakers monitor for potential risks and trigger emergency workflows when a bad event is imminent or has occurred. ### Secure Deployment Circuit breakers are deployed within a Trusted Execution Environment (TEE) via a Secure Enclave. The [Turnkey](turnkey.com) API key is generated and stored within the enclave, ensuring it remains inaccessible to the Syntropia team. ## Overall Syntropia’s security framework combines audited smart contracts, secure key management via Turnkey’s Secure Enclave, strict operational policies, and advanced circuit breaker mechanisms to protect user funds. By conducting thorough protocol analysis, modeling risks, and preparing robust exit strategies, Syntropia minimizes vulnerabilities while maximizing user confidence. This multi-layered approach ensures that funds are safeguarded at every step, from deposit to redemption, even in worst-case scenarios.