Criterion · method version 1.2.0
Security
What this criterion measures in each category, from method version 1.2.0.
Criterion id: security · from release method-v1.2.0
What it measures
In Exchanges and brokers
How well the platform protects the assets it holds for its customers. Evidence: the custody model (which share is held in cold storage, with whom, and whether customer assets are segregated from the company's own), published proof of reserves and whether it covers liabilities as well as assets, the documented incident history (hacks, losses, outages) with the platform's response, and protection mechanisms such as two-factor authentication, withdrawal address allowlists and insurance or compensation funds with their published terms.
In Hardware wallets
How well the device protects private keys against extraction, tampering and faulty firmware. Evidence: the key storage hardware (secure element or general-purpose chip), whether firmware and companion software are open source and reproducibly built, published independent audits, the documented incident and vulnerability history with the maker's response, and multisig support.
In Mobile wallets
How well the app protects keys and funds on a general-purpose phone. Evidence: use of the phone's hardware-backed key storage, whether the app is open source and reproducibly built, published independent audits, the documented incident and vulnerability history with the provider's response, and multisig support.
In On-ramps
How well the service protects customers' money and assets during a purchase or sale. Evidence: the custody model (whether purchased assets are delivered straight to the customer's own address or held by the service first, and for how long), published proof of reserves where the service holds balances, the documented incident history with the service's response, and protection mechanisms such as address checks and account protection.
How the score is built
The sub-criteria an assessor notes on the way to the score. They are not published as scores of their own.
In Exchanges and brokers
Assessors note sub-scores as whole numbers from 0 to 100.
- Custody model
- How customer assets are held: cold and hot storage shares, the custodian, and segregation from the company's own assets.
- Proof of reserves
- Published attestations of reserves, how often, by whom, and whether liabilities are included.
- Incidents
- Known hacks, losses and outages, their size, and how quickly and openly the platform disclosed them and compensated customers.
- Protection mechanisms
- Account protection (two-factor authentication, address allowlists, withdrawal delays on change) and compensation funds or insurance with their published terms.
In Hardware wallets
Assessors note sub-scores as whole numbers from 0 to 100.
- Secure element
- Key storage in dedicated tamper-resistant hardware, and the published resistance to physical and side-channel attacks.
- Open source
- Firmware and companion software whose source code is public and whose builds can be reproduced from it.
- Audits
- Independent security audits, their scope, date and published findings.
- Track record
- Known incidents and vulnerabilities, their severity, and how quickly and openly the maker fixed and disclosed them.
- Multisig support
- Whether the device can take part in multisig setups with other devices.
In Mobile wallets
Assessors note sub-scores as whole numbers from 0 to 100.
- Secure element
- Use of the phone's secure enclave or hardware-backed keystore, and app-level protection (PIN, biometrics, encryption at rest).
- Open source
- App source code that is public and whose builds can be reproduced from it.
- Audits
- Independent security audits, their scope, date and published findings.
- Track record
- Known incidents and vulnerabilities, their severity, and how quickly and openly the provider fixed and disclosed them.
- Multisig support
- Whether the app can create or take part in multisig setups.
In On-ramps
Assessors note sub-scores as whole numbers from 0 to 100.
- Custody model
- Direct delivery to the customer's own address, or a custodial balance first, and how long assets stay with the service.
- Proof of reserves
- Published attestations where the service holds customer balances.
- Incidents
- Known losses, fraud cases and outages, and how quickly and openly the service disclosed them and compensated customers.
- Protection mechanisms
- Address checks before sending, account protection and refund terms.
Evidence and confidence
Every score of this criterion cites evidence items with their sources, and carries one of four confidence labels.
- high
- Primary sources checked at the assessment date, confirmed by a WhatTheChain test or a second independent source.
- medium
- Primary sources that could not be confirmed independently, or some older than the last scheduled review.
- low
- Only secondary sources, or sources that conflict; the rationale explains which one the value follows.
- estimate
- No direct source: derived from documented properties and comparable designs, and the rationale says how.