# Security & Risk Management

loopedHYPE adheres to institutional-grade security by combining robust protocols, multi-layer oversight, and swift emergency response.

**Protocol Security Measures**

* Integration is limited to protocols thoroughly audited and approved by the strategy committee.
* Real-time monitoring catches anomalies immediately, triggering an emergency response within 30 minutes.
* We only integrate protocols with direct partnerships to ensure clear communication and reliable oversight.

**Strategy Security Measures**

* Every proposed strategy is formally reviewed and approved by the committee prior to deployment.
* We eliminate depeg risks by relying exclusively on lending protocols that use on-chain exchange ratios.
* No dollar-based leverage is employed, reducing exposure to currency fluctuations.

**Operational Security Measures**

* Ultimate custody of user funds remains within the smart contract, preventing any external party from accessing assets.
* Updates to vault configurations require a multi-signature process, involving team members from both Nucleus and Staking Rewards.
* Every signatory must remain accessible within a 30-minute window for timely execution of critical changes.
* The Risk Curator has only access to whitelisted smart contract functions from the Strategy Committee, and never has access to any funds.

***

### Audit Reports

[Paxos Labs](https://paxoslabs.com/) (fmr. Nucleus) Boring Vault Infrastructure is audited multiple times by independent auditors for the Ethereum EVM implementation.

* [Repository of Audit Reports](https://github.com/Ion-Protocol/nucleus-boring-vault/tree/master/audit)

The HyperEVM implementation matches the Ethereum implementation 1:1.

***

### Vault Infrastructure

loopedHYPE uses an institutional-grade vault infrastructure provided by [Paxos Labs](https://paxoslabs.com/) (fmr. Nucleus), in collaboration with [Staking Rewards](https://www.stakingrewards.com/). 

The vault infrastructure uses Paxos Labs' [BoringVault framework](https://docs.nucleusearn.io/nucleus-architecture/vault-framework), an ERC20 token contract that custodies all deposit assets and exposes permissions for minting and burning the vault shares.

Contract addresses used in the LHYPE deployment include:

| Ticker | Contract               | Address                                    |
| ------ | ---------------------- | ------------------------------------------ |
| LHYPE  | BoringVault            | 0x5748ae796AE46A4F1348a1693de4b50560485562 |
| LHYPE  | Teller                 | 0xFd83C1ca0c04e096d129275126fade1dC45BF4F0 |
| LHYPE  | Manager                | 0xe661393C409f7CAec8564bc49ED92C22A63e81d0 |
| LHYPE  | Accountant             | 0xcE621a3CA6F72706678cFF0572ae8d15e5F001c3 |
| LHYPE  | RolesAuthority         | 0xDc4605f2332Ba81CdB5A6f84cB1a6356198D11f6 |
| LHYPE  | CommunityCodeDepositor | 0x6e358dd1204c3fb1D24e569DF0899f48faBE5337 |

For the RolesAuthority contract, various addresses take on specific roles, as outlined below:

| Role Type                        | Description                                                                                               | Address                                    |
| -------------------------------- | --------------------------------------------------------------------------------------------------------- | ------------------------------------------ |
| Strategist Role (1)              | This role can call the ManagerWithMerkleVerification contract.                                            | 0xcb8fa722b2a138fac6b6d60013025e2504b9b753 |
| Strategist Role (2)              | This role can call the ManagerWithMerkleVerification contract.                                            | 0x518628F095c7226986911c925F1C5DAeeDcA94Ad |
| Strategist Role (3)              | This role can call the ManagerWithMerkleVerification contract.                                            | 0x2f538e1E9CF072D80E138227B3Dcd991e5dC41b3 |
| Strategist Role (4) - UltraYield | This role can call the ManagerWithMerkleVerification contract.                                            | 0x9a81B594C3f6D8812A074A592C20172Fb786616A |
| Manager Role (4)                 | This role is granted to the ManagerWithMerkleVerification contract.                                       | 0xe661393C409f7CAec8564bc49ED92C22A63e81d  |
| Teller Role (5)                  | This role is granted to the TellerWithMultiAssetDeposit contract.                                         | 0xFd83C1ca0c04e096d129275126fade1dC45BF4F0 |
| Rate Provider Role (6)           | This role is granted to the EOA that can update the exchange rate on the Accountant.                      | 0x1755397BEc366a1e1160d8aE0106C60E7e344B56 |
| Solver Role (7)                  | This role is granted to the solvers that can withdraw assets and fulfill user withdraw requests.          | 0x54563d1DdB55b029D6D7AcD89C633af746823092 |
| Pauser Role (8)                  | This role is granted to the pauser contract that can pause the contract in an incident response scenario. | 0x858d3eE2a16F7B6E43C8D87a5E1F595dE32f4419 |

### Tax Reports

LHYPE is a value-accruing token based on the tax-friendly cToken model. 

loopedHYPE’s Protocol Conversion Rate, the internal rate that governs how LHYPE is valued compared to HYPE at minting and redemption, programmatically changes over time to accurately represent the value of staked HYPE and accumulated rewards.

loopedHYPE's Protocol Conversion Rate, set automatically at the protocol level, operates independently from any market trading rates of LHYPE.\
\
Tax & Accounting Reports can be requested at <info@loopedhype.com> for any staked amounts of $1m+