09 Security Model

Comprehensive Security Framework

ProSignal AI implements a multi-layered security architecture that protects user data, platform integrity, and financial transactions. Our security model addresses threats across authentication, data protection, smart contract security, and operational security domains.

Authentication & Access Control

Web3 Authentication System

Web3 Wallet Authentication

ProSignal AI uses industry-standard Web3 wallet authentication protocols for user login, providing several security advantages:

  • Cryptographic Verification: Users prove wallet ownership through digital signatures

  • No Password Vulnerabilities: Eliminates risks associated with password-based systems

  • Decentralized Identity: Users maintain control over their authentication credentials

  • Replay Attack Protection: Nonce-based system prevents signature reuse

  • Time-Limited Sessions: JWT tokens with configurable expiration periods

Web3 wallet authentication minimizes traditional password risks by relying on cryptographic signatures and nonce-based flows.

Multi-Factor Authentication (2FA)

For enhanced security, the platform supports Time-based One-Time Password (TOTP) authentication:

  • Optional Implementation: Users can enable 2FA for additional protection

  • Standard TOTP Protocol: Compatible with Google Authenticator, Authy, and similar apps

  • Backup Codes: Recovery mechanisms for lost authenticator devices

  • Administrative Controls: 2FA requirements for sensitive operations

Role-Based Access Control

User Permissions

  • Standard Users: Access to predictions, subscriptions, and referral features

  • Administrators: Platform management, user administration, and system configuration

  • Service Accounts: Limited permissions for automated system operations

Permission Validation

  • Server-side permission checks for all sensitive operations

  • JWT token validation with role-based claims

  • API endpoint protection with middleware authentication

  • Administrative function isolation and logging

Data Protection & Privacy

Privacy-First Architecture

Minimal Data Collection

ProSignal AI collects only essential information required for platform operation:

  • Wallet Addresses: Public blockchain addresses for authentication and payments

  • Email Addresses: Optional, for notifications and communication only

  • Usage Analytics: Anonymized platform interaction data for improvements

  • No Personal Data: No KYC requirements, personal identification, or financial information

Data Encryption

  • Transport Layer Security: TLS 1.3 encryption for all communications

  • Database Encryption: Sensitive data encrypted at rest

  • API Security: HTTPS enforcement for all client-server communications

  • Session Protection: Secure cookie configuration and session management

Blockchain Privacy

Transaction Privacy

  • Pseudonymous Operations: Wallet addresses provide privacy without full anonymity

  • No Personal Linking: Platform doesn't link wallet addresses to personal identities

  • Optional Disclosure: Users control what information they share

  • Public Verification: Transaction transparency without personal data exposure

Smart Contract Security

PSAI Token Security

Access Control Implementation

The PSAI smart contract implements strict access controls:

  • Owner-Only Functions: Critical operations restricted to contract owner

  • Transfer Lock Logic: Selective restrictions only for airdrop recipients

  • Immutable Rules: Core tokenomics cannot be changed after deployment

  • Emergency Controls: Limited emergency functions with transparent execution

Security Validations

  • Input Validation: All function parameters validated for correctness

  • Overflow Protection: SafeMath implementation prevents arithmetic errors

  • Reentrancy Guards: Protection against reentrancy attacks

  • Gas Optimization: Efficient code reduces attack surface and costs

Contract Audit Considerations

Security Best Practices

  • OpenZeppelin Libraries: Use of battle-tested, audited contract components

  • Standard Patterns: Implementation of proven security patterns

  • Comprehensive Testing: Extensive testing before mainnet deployment

  • Code Transparency: Open-source contract code for community review

Future Audit Plans

  • Professional Audits: Third-party security audits for major contract updates

  • Bug Bounty Programs: Community-driven security testing incentives

  • Continuous Monitoring: Ongoing security assessment and improvement

  • Incident Response: Prepared response procedures for security events

Infrastructure Security

Application Security

Input Validation & Sanitization

  • Zod Schema Validation: Comprehensive input validation on all API endpoints

  • SQL Injection Prevention: Parameterized queries through Drizzle ORM

  • XSS Protection: Content Security Policy and output encoding

  • CSRF Protection: SameSite cookie configuration and token validation

API Security

  • Rate Limiting: Protection against abuse and DoS attacks

  • Authentication Middleware: JWT validation on protected endpoints

  • Error Handling: Secure error responses without information disclosure

  • Logging & Monitoring: Comprehensive security event logging

Database Security

Access Controls

  • Principle of Least Privilege: Database users have minimal required permissions

  • Connection Security: Encrypted database connections

  • Query Optimization: Indexed queries prevent performance-based attacks

  • Backup Security: Encrypted backups with secure storage

Data Integrity

  • Transaction Consistency: ACID compliance for critical operations

  • Referential Integrity: Foreign key constraints prevent data corruption

  • Audit Trails: Comprehensive logging of data modifications

  • Version Control: Database schema versioning and migration tracking

Operational Security

Development Security

Secure Development Lifecycle

  • Code Review Process: Peer review for all code changes

  • Dependency Management: Regular updates and vulnerability scanning

  • Environment Separation: Isolated development, staging, and production environments

  • Secret Management: Secure storage and rotation of sensitive credentials

Deployment Security

  • Infrastructure as Code: Version-controlled infrastructure configuration

  • Automated Testing: Security tests integrated into CI/CD pipeline

  • Rollback Procedures: Quick rollback capabilities for security incidents

  • Monitoring Integration: Real-time security monitoring and alerting

Incident Response

Security Monitoring

  • Real-Time Alerts: Automated detection of suspicious activities

  • Log Analysis: Comprehensive logging and analysis of security events

  • Performance Monitoring: Detection of anomalous system behavior

  • User Activity Tracking: Monitoring for unusual user patterns

Response Procedures

  • Incident Classification: Standardized severity levels and response procedures

  • Communication Plans: Clear communication protocols for security events

  • Recovery Procedures: Documented steps for system recovery and restoration

  • Post-Incident Analysis: Comprehensive review and improvement processes

Compliance & Regulatory Considerations

Data Protection Compliance

Privacy Regulations

  • GDPR Considerations: Privacy-by-design architecture minimizes compliance requirements

  • Data Minimization: Collection of only necessary data reduces regulatory exposure

  • User Rights: Mechanisms for data access, correction, and deletion where applicable

  • Cross-Border Data: Careful consideration of international data transfer requirements

Financial Regulations

Cryptocurrency Compliance

  • Information Service Model: Platform provides information, not financial advice

  • No Custody Services: Users maintain control of their own cryptocurrency

  • Transparent Operations: All transactions publicly verifiable on blockchain

  • Regulatory Monitoring: Ongoing assessment of evolving regulatory landscape

Risk Management

Threat Assessment

Identified Risks

  • Smart Contract Vulnerabilities: Mitigation through audits and testing

  • API Security Threats: Protection through validation and rate limiting

  • User Account Compromise: Mitigation through 2FA and secure authentication

  • Infrastructure Attacks: Protection through monitoring and redundancy

Risk Mitigation Strategies

  • Defense in Depth: Multiple security layers for comprehensive protection

  • Regular Updates: Continuous security improvements and patch management

  • User Education: Security best practices communication to users

  • Insurance Considerations: Evaluation of security insurance options

Business Continuity

Disaster Recovery

  • Backup Systems: Regular, tested backups of all critical data

  • Redundancy: Multiple system redundancy for high availability

  • Recovery Procedures: Documented and tested disaster recovery plans

  • Communication Plans: Clear communication during service disruptions

Security Culture

  • Team Training: Regular security training for all team members

  • Security Awareness: Ongoing education about emerging threats

  • Vendor Security: Security assessment of all third-party services

  • Community Engagement: Transparent communication about security practices

The ProSignal AI security model represents a comprehensive approach to protecting users, platform integrity, and business operations while maintaining the transparency and accessibility that blockchain technology enables.