> For the complete documentation index, see [llms.txt](https://docs.atoma.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.atoma.fi/security/protections.md).

# Protocol Protections

## Custody

The vault contract holds idle USDC and handles deposits, share accounting, settlement and fees. Capital in use sits in the vault's trading wallet and venue accounts, operated by Atoma. There is no third-party custodian.

USDC can leave the vault contract only to pre-approved addresses, with a 24-hour delay on new ones. USDC owed to settled withdrawals cannot leave the contract.

## Roles

The operator publishes NAV updates within contract limits, settles epochs, charges the weekly performance fee and can pause deposits. It cannot upgrade the contract, change parameters, move USDC out of the contract or unpause. A multisig owner controls upgrades, parameters and capital movements.

Every function by role: [Smart Contract](/security/contracts.md).

## Contract limits

* **NAV updates.** At most one operator update every 30 minutes, with a change of at most 2%.
* **Epoch settlement.** All requests in an epoch settle at the same share price.
* **Deposit lock.** Shares cannot be withdrawn until the epoch of the deposit ends.
* **Non-transferable shares.** Shares cannot move between wallets.
* **Pause.** Stops deposits only. Withdrawals continue.
* **Verified source.** Both contracts are verified on Arbiscan: [Smart Contract](/security/contracts.md).

## Trading controls

* **Margin monitoring.** Margin on every venue account is checked every 30 seconds. At the critical level, the largest position on that venue is closed automatically.
* **Hedged positions.** Every position is long one contract and short another on the same underlying, at equal size.

## Limitations

The vault contract has had an [agentic audit](/security/agentic-audit.md) by Nethermind AuditAgent, but not a manual third-party audit. There is no independent administrator: Atoma calculates and publishes the NAV within the contract limits.