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Security Model

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Core Security Features

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Pre-Signed Transactions

• Minimizes user intervention while maintaining security
• Allows automated claim execution
• Reduces risk of user error or timing issues
• Ensures funds can be claimed even if counterparty is offline

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Time-Lock Mechanism

• Ensures funds can always be claimed by the rightful owner
• Implements dual-timelock system (L1 and L2)
• Prevents permanent fund locking
• Enables claim of locked funds if swap fails

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Atomic Execution

• Prevents partial swaps
• Eliminates asymmetric risks
• Ensures both parties receive funds or neither does
• Maintains transaction integrity across chains

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Locktime Considerations

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Timelock Design (L1 >> L2)

1. Primary Security Features:
   • Guaranteed claimability for users
   • Prevention of asymmetric execution
   • Atomic completion guarantee
2. User Protection:
   • Funds always recoverable
   • No trust required in Liquidity Node
   • Clear fallback mechanisms

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Fail-Safe Mechanisms

1. Automatic Recovery
   • User funds auto-revert after L2 expiry
   • Liquidity Node funds revert after L1 expiry
   • No manual intervention needed
2. Cross-Chain Safety
   • Sequential unlocking prevents race conditions
   • Hash-locked contracts ensure atomic execution
   • Timelock differentials prevent gaming

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Secret Management

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Secret Generation

• Cryptographically secure random generation
• High entropy requirements
• Uniqueness verification
• Secure storage protocols

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Hash Commitment

• SHA-256 hash function
• Immutable commitment scheme
• Cross-chain compatibility
• Verifiable on both networks

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Attack Vector Mitigations

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Front-Running Protection

• Pre-signed transactions prevent manipulation
• Timelock sequencing prevents exploitation

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Counterparty Risk Mitigation

• No custodial requirements
• Automatic reversion capabilities
• Trustless execution model