Security Model

Owner Permissions

Both CollateralPool and InventoryPools are controlled by a multisig smart account with exclusive permissions to:

• Liquidate solver balances and pending withdrawals

• Initiate borrowing against solver collateral

• Update protocol parameters

Cross-Chain Security

• Chain ID verification ensures that multisig signed borrows are only valid on the intended chain

• Solver collateral remains on Arbitrum One while LP funds are deployed across different chains

• Validators provide signatures off-chain to solvers to initiate borrowing

Validators

Validators act as the gatekeeper of borrowing. They work as follows:

• Borrow transactions require sign-off from validators

• Validators monitor solver's collateral

• Validators can trigger collateral liquidation for non-compliance

• Validators coordinate through a Safe multisig contract

• By participating as a solver or LP in Nomial V1, you are fully trusting the V1 validator set