> ## Documentation Index
> Fetch the complete documentation index at: https://docs.into.space/llms.txt
> Use this file to discover all available pages before exploring further.

# Security

> Risk controls and safety mechanisms

Space implements multiple layers of risk controls to protect users and maintain market integrity.

## Oracle Security

**Multi-Source Validation:**

* Median of [Pyth](https://www.pyth.network/) + [Switchboard](https://switchboard.xyz/) prices
* Reject if [oracles](/resolution/oracle) disagree by >2%
* 15-minute TWAP averages out manipulation

**Liveness Checks:**

* Require minimum updates in TWAP window
* Extend window if oracle temporarily down
* Mark invalid if insufficient data

**Price Clamping:**

* Maximum 1% price movement per minute
* Outlier detection: reject prices >3 standard deviations
* Multi-feed median prevents single-source manipulation

## Circuit Breakers

Markets automatically pause if price moves:

* 10% in \<60 seconds
* 25% in \<5 minutes

**On Trigger:**

<Steps>
  <Step title="Trading paused immediately" titleSize="h3" />

  <Step title="Switch to call auction mode" titleSize="h3" />

  <Step title="Admins alerted" titleSize="h3" />

  <Step title="Automatic resume after cooldown or manual approval" titleSize="h3" />
</Steps>

Prevents flash crashes and manipulation attempts.

## Liquidation Controls

Position Value \< Maintenance Margin → Liquidation

**Liquidation Process:**

<Steps>
  <Step title="Liquidate 25% of position" titleSize="h3" />

  <Step title="Apply 10% penalty to insurance fund" titleSize="h3" />

  <Step title="Check if still underwater" titleSize="h3" />

  <Step title="If yes: liquidate another 25%" titleSize="h3" />

  <Step title="Repeat until position safe or fully liquidated" titleSize="h3" />
</Steps>

**Insurance Fund:**

* Funded by liquidation penalties (10% of liquidated value)
* Plus 5% of all platform fees
* Covers negative balances from latency/congestion
* Balance publicly visible on-chain
* Target reserve: 2% of platform TVL The insurance fund protects the platform from user accounts going negative due to rapid price movements or network congestion preventing timely liquidation.

## Pre-Event Freeze

Markets can implement freeze mechanisms before resolution:

**Option 1: Fee Escalation**

Time to resolution \< 10 minutes: $\text{Taker Fee} \times 3$

Time to resolution \< 5 minutes: $\text{Taker Fee} \times 5$

**Option 2: Position Freeze**

Time to resolution \< 5 minutes:

* New positions: DISABLED
* Exit positions: ENABLED

Prevents last-second manipulation with insider information or unfair advantage from faster information access.

## Slippage Protection

Users set maximum acceptable slippage on market orders (default 5%).

If $\frac{|\text{Actual Fill Price} - \text{Expected Price}|}{ \text{Expected Price}} > \text{Max Slippage}$: → Revert transaction → No trade executed → No fees charged

Protects users from unexpected execution prices in volatile or thin markets.

## Platform Upgrades

**Timelock Requirements:**

* Parameter changes: 48-hour timelock
* Critical code changes: 72-hour timelock

**Multisig Control:**

* 3-of-5 multisig for admin functions
* 2-of-3 multisig for resolution submissions
* 2-of-5 multisig for emergency pause (faster response)

All governance actions are transparent and logged on-chain.

## Future: zkML & zkTLS Research

Space is researching [zero-knowledge proofs](/concepts/resolution) for an even more cutting-edge, trustless subjective resolution yet to be utilized within prediction markets:

**zkML (Zero-Knowledge Machine Learning):**

* Prove AI model output without revealing model weights
* On-chain verification of resolution logic
* No trust required in resolution operators

**zkTLS (Zero-Knowledge Transport Layer Security):**

* Prove data was fetched from specific URL
* Cryptographic proof of source authenticity
* Combine with zkML for fully automated resolution

**Combined Architecture:** Fetch news article via zkTLS → Process with zkML → Submit proof on-chain → Automatic resolution with cryptographic guarantees.