> For the complete documentation index, see [llms.txt](https://docs.primestaking.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primestaking.xyz/security/custody-and-key-management.md).

# Custody & Key Management

PrimeStaking uses a **permissionless, smart contract-based** validator custody model - eliminating human interaction from custody flows entirely.

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## How It Works

* **Smart contract-based execution** - validator keys and staked XDC are managed entirely by audited smart contracts, with no human interaction in custody flows.
* **Permissionless** - anyone can verify the state of validators and staked assets on-chain. No centralized approval required.
* **Trustless** - no single entity controls the keys. The protocol enforces custody rules through code, not operational trust.
* **Institutional-grade transparency** - full operational transparency aligned with institutional security standards.

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## Audit & Collaboration

PrimeStaking's custody infrastructure is developed in collaboration with:

* Nethermind: smart contract development and security review
* XDC Core team: network-level validator integration

The custody substrate (the `PrimeStakedXDC_V3` vault design + `PrimeStakedXDC_V3MigrationBridge`) was independently audited by **Nethermind Security** in audit **NM-0843, XDC Prime Stake** (final report **May 08, 2026**). All Critical, High, and Medium findings are Fixed; the three Acknowledged findings are operationally mitigated. The live vault, `PrimeStakedXDC_V3_2`, is a redeployment of this audited codebase. See the [Audits page](/security/audits-1.md) for the V3.2 delta and per-finding breakdown, or [read the full report (PDF)](https://github.com/PrimeNumbersLabs/primestaking-gitbook/tree/main/NM_0843_xdc_prime_stake_FINAL_updated_tests.pdf).

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## What This Means for Users

| Property                 | Detail                                            |
| ------------------------ | ------------------------------------------------- |
| **Custody model**        | Smart contract-based (no third-party custodian)   |
| **Key management**       | Validator keys secured by on-chain contracts      |
| **Human interaction**    | Eliminated from custody flows                     |
| **Verifiability**        | Fully transparent and auditable on the blockchain |
| **User action required** | None - fully seamless                             |

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## Impact on Users

* Users retain **full ownership** of their assets at all times.
* Smart contract-based custody eliminates reliance on any centralized custodian, strengthening the protocol's decentralization.
* In V3, **withdrawal UX has improved**: redemptions settle instantly when the vault's liquid buffer permits, and otherwise enter a permissionless FIFO queue users can [self-claim](/products/xdc-liquid-staking/staking-guide/withdrawals-instant-vs-queued.md) (`claimQueuedAssets`). The upper bound for queue settlement is the XDC Network's `candidateWithdrawDelay`, approximately **35 days** under typical block times.
* The psXDC v3 vault is **non-upgradeable**, so the contract that holds your XDC cannot be modified by anyone. Only the NFT staking vault is upgradeable, and only through multisig + delayed governance.