> For the complete documentation index, see [llms.txt](https://docs.whales.market/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.whales.market/pre-market/cross-chain-settlement/security-model.md).

# Security Model

### Asset Backing

Every wrapped token on the Listing Chain is backed by:

* One locked token on the TVL Chain
* Stored in a secure smart contract

There is no over-minting.

### Non-Custodial Design

* The protocol cannot move funds without user signatures
* All transfers are initiated by users
* No centralized custody is involved

### LayerZero Integration

LayerZero is used for:

* Cross-chain messaging
* Bridge confirmation
* Secure delivery guarantees

Settlement only proceeds after confirmed cross-chain messages.

***

### FAQs

<details>

<summary>How are wrapped tokens collateralized on the Listing Chain?</summary>

Every wrapped token is backed 1:1 by an original token locked within a secure smart contract on the TGE Chain, ensuring zero over-minting.

</details>

<details>

<summary>Does the protocol have control over my funds?</summary>

No, the system features a non-custodial design where no centralized custody is involved and all transfers require an explicit user signature to execute.

</details>

<details>

<summary>What role does LayerZero play in the security of the settlement?</summary>

LayerZero provides the infrastructure for secure cross-chain messaging, bridge confirmations, and guaranteed delivery of assets between networks.

</details>

<details>

<summary>Can a settlement occur if the cross-chain message is not confirmed?</summary>

No, the protocol strictly requires a confirmed cross-chain message through LayerZero before any settlement transaction is allowed to proceed.

</details>

<details>

<summary>Are assets stored in a centralized vault during the bridge process?</summary>

No, assets are stored in secure, decentralized smart contracts on the TGE Chain, and transfers are only initiated by the users themselves.

</details>


---

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