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Threat Model

Cloak is designed to protect against specific threats inherent to public blockchains:
  • Wallet Linkability: Preventing observers from easily linking a swap to your main wallet.
  • Strategy Inference: Making it difficult to guess your overall position or strategy based on a single transaction.
  • MEV/Sandwich Attacks: Reducing the risk of predatory trading bots by using private executors.

What we DO protect against

  • Basic Linkage: Your wallet never signs the swap transaction.
  • Clustering: Repeated trades from the same wallet are harder to correlate.
  • Pattern Recognition: Chunking and randomization make large orders look like unrelated market noise.

What we do NOT protect against

  • Nation-State Adversaries: Advanced traffic analysis (IP/timing correlation) is out of scope.
  • Fund Flows: If you withdraw from a KYC’d exchange directly to a fresh wallet and then use Cloak, the flow of funds is still traceable on-chain.

Safety Principles

  1. No Loss of Funds: In the event of a system failure, your funds should always be recoverable.
  2. Non-Custodial: We do not hold your private keys or pool your funds (except in the specific case of the Escrow for Stealth Sells).