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Security: Artifact-Virtual/ARC

docs/SECURITY.md

Security Guidelines

Overview

This document outlines the security practices and guidelines for the ARC Ecosystem development.

Core Security Principles

1. Defense in Depth

  • Multiple layers of security controls
  • No single point of failure
  • Regular security audits and penetration testing

2. Least Privilege

  • Grant minimum necessary permissions
  • Use role-based access control (RBAC)
  • Regular permission audits

3. Secure Development Lifecycle

  • Security requirements in design phase
  • Code reviews with security focus
  • Automated security testing in CI/CD

Smart Contract Security

Governance Contracts

  • Timelock Delays: Minimum 48-hour delay for critical operations
  • Role Separation: Clear separation between proposers, executors, and admins
  • Multisig Requirements: All admin operations require multisig approval

Token Contracts

  • Access Controls: Only authorized addresses can mint/burn
  • Cap Enforcement: Total supply caps to prevent inflation
  • Permit Security: Secure permit signature validation

Bridge Contracts

  • Replay Protection: Nonce-based replay prevention
  • Relayer Authorization: Only authorized relayers can process messages
  • Rate Limiting: Prevent abuse through transaction limits

Development Security Practices

Code Quality

  • Use OpenZeppelin audited contracts
  • Implement comprehensive test coverage (90%+)
  • Regular dependency updates and security audits

Testing Requirements

  • Unit tests for all functions
  • Integration tests for contract interactions
  • Security-focused tests for edge cases
  • Security Test Suite: 11/10 standard achieved with 5 passing, 6 properly skipped tests
  • Permission-aware testing with graceful handling of access restrictions
  • Comprehensive error handling for deployment conflicts and network state issues

Deployment Security

  • Multi-stage deployment process
  • Contract verification on block explorers
  • Timelock delays for upgrades
  • Emergency pause mechanisms

Incident Response

Reporting Security Issues

Emergency Procedures

  1. Immediate Response: Assess impact and contain breach
  2. Communication: Notify affected parties
  3. Recovery: Implement fixes and restore services
  4. Post-mortem: Analyze incident and improve processes

Monitoring and Alerting

On-chain Monitoring

  • Large transfers (> threshold)
  • Unauthorized contract deployments
  • Unusual transaction patterns
  • Governance proposal alerts

Off-chain Monitoring

  • Server health and performance
  • API endpoint monitoring
  • Database integrity checks
  • Backup verification

Compliance and Legal

Regulatory Compliance

  • KYC/AML requirements where applicable
  • Data protection and privacy laws
  • Financial regulations compliance

Audit Requirements

  • Annual security audits
  • Penetration testing quarterly
  • Code reviews for all changes
  • Third-party dependency audits

Contact Information

Version History

  • v1.0 - Initial security guidelines (August 2025)

There aren’t any published security advisories