Flash Trade Security

The Flash Trade platform adheres to the basic principles of DeFi systems and fully implements the following properties that ensure maximum security and openness of operations:

1. Permissionless:

The protocol is completely open and accessible to any participant so that users can make swaps without hindrance. At the same time, any participant can become a Resolver, Maintainer, Liquidator, or Liquidity Provider. The conditions for participation are equal for everyone, as they are controlled by a set of open rules implemented in the protocol's smart contracts and the consensus of the distributed network of Kinetex Nodes. The system is an open ecosystem, has no prior authorization, and includes no intermediaries or a centralized point of control.

2. Trustless:

The system is designed in such a way that it does not require trust because of the use of smart contracts and the use of ZK technology. Order validation is based on Kinetex Light Clients, which are updated by a decentralized network of Kinetex Nodes using ZK proofs. Users can make swaps with confidence by relying on ZKP's cryptographic properties and immutable smart contract logic.

3. Decentralized:

The core part of the protocol is a set of smart contracts, the workflow and integrity of which are controlled by a distributed blockchain network. These smart contracts are designed so that the system has no admin roles on the contract level. In addition, some contracts include other contract addresses or some sort of security configuration in their constructors, making them immutable (cannot be changed by anyone once deployed).

In addition, the use of a decentralized network of nodes responsible for servicing the protocol (Kinetex Nodes), including order matching and ZKP generation, ensures that the platform operates without a single point of control.

Some protocol settings are managed by a DAO, which provides a distributed decision-making process. Thus, the decisions made are focused on ensuring maximum security for system participants, and the risk of manipulation and malicious usage of the protocol is also reduced.

4. Collateralized:

To fully ensure the security of swaps, the protocol requires resolvers to post collateral to be able to carry out swaps. This collateral acts as security for the execution of the order, incentivizing the resolver to complete it in full within the agreed-upon time frame. The order cannot be executed if the collateral does not cover the order volume; this check is performed at the smart contract level and cannot be manipulated.

5. Resilient:

The protocol is designed to be resilient to potential user losses, either unintentionally or due to resolver abuse. If a problem arises, liquidators can step in and execute an order instead of a failed resolver and seize the resolver's collateral, providing proof of the order's execution. This insurance mechanism adds a layer of financial security and risk mitigation for all participants.

6. Transparent:

Transparency is a fundamental property of the Flash Trade system. All transactions and orders are executed through interaction with smart contracts and are recorded on the blockchain, ensuring complete openness of operations.

Additionally, the community can participate in protocol governance decisions through the DAO, promoting an open and transparent approach to system development.