The security of your assets is our top priority.

Smart Contract Insurance

Ethereum has become the platform for Decentralized Finance (DeFi). Thousands of developers have already built smart contracts (code that runs on the Ethereum blockchain) to enable their DeFi applications.

But some of these smart contracts contain vulnerabilities: a fact that became all too clear in 2016 when hackers exploited a bug and seized a huge volume of Ether in the now-infamous ‘DAO Attack.’

To protect clients from falling victim to a similar event, Elitium connects to DeFi protocols using in-house smart contacts, eliminating the risk by avoiding vulnerable third-party software. The setup keeps assets locked in our network and under our control (similar to how Binance operates).

Elitium also insures all digital assets held on our platform using smart contract cover provided by Nexus Mutual.

Secure Price Feeds

A blockchain can’t access external data. But oracles can act as an agent for a blockchain, finding and verifying real-world data before submitting it securely for the blockchain to use.

The setup allows smart contracts to interact with the outside world, defining state changes that trigger actions based on external events. But oracles create a vulnerability. They build a centralized point of trust into a system that’s meant to be trustless and decentralized.

And this isn’t only a weakness. It’s a possible point of failure, as one compromised oracle can effectively compromise an entire smart contract.

Given that Elitium offers DeFi services, our network uses oracles to access external price feeds.

We remove the risk of any oracle-related vulnerability by using a decentralized oracle network; Chainlink provides the service, guaranteeing a secure, tamper-resistant price feed.

In-house Hot & Cold Wallets

On November 6th, 2017, a Github user called devops199 exploited a vulnerability in the Parity Multi-signature Wallet. He deleted some code and, in doing so, mistakenly blocked funds in 587 wallets, amounting to a total of 513,774.16 Ether (as well as various other tokens) lost and gone forever.

The Parity issue was not a one-off. But there are ways to stop the event from happening again

Elitium has eliminated the risk by creating proprietary hot and cold wallet solutions, coupled with in-house smart contracts that control transfers, balances, and exchanges or swaps.

Moreover, Elitium never discloses data as a further safeguard.

Extensive Hack Mitigation

The most prominent risks in crypto are everyday scams. And while there’s no single solution to counter the tactics scammers use, there are measures Elitium takes to mitigate the threats.

1) EUM only lists in exchanges that require extensive KYC. That way, if funds leave a wallet illegally, we can identify the user who stole them, then block their account.
2) Elitium stores all non-EUM currencies in a cold storage facility.
3) Beyond Nexus Mutual, Elitium has taken out insurance policies with Union and InSure, offering protection against portfolio volatility and hacks.
4) Elitium also offers a native insurance protocol (EUM-i), protecting users against self-inflicted losses.
5) Elitium enforces strict internal security policies, avoiding insider threats by compartmentalizing cold storage facilities, sensitive data, and the codebase.