# 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

An independent security audit of the custody contracts is underway as part of our ongoing security program. Full results will be published upon completion.

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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

* **No change** to reward rates, withdrawal times, or fee structure.
* 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.