Security
Security is verifiable, not a claim.
Lighter is built to deliver exchange-level performance while enabling verifiable order matching and liquidations through cryptographic proofs verified on Ethereum.
Verifiable Matching
Matching and liquidation operations aim to be provable against transparent rules, making manipulation meaningfully harder to hide.
Security model (high-level)
Three pillars, one verifiable model.
System state changes and verification are anchored to Ethereum for security and settlement guarantees.
Core operations, including matching and liquidations, are proven cryptographically and can be verified publicly.
The rollup contract includes mechanisms for deposits, withdrawals, and censorship-resistant transaction submission with an escape-hatch mode.
What “verifiable” means
Matching and liquidations are designed to be provable.
Most exchanges are black boxes. Lighter’s goal is different:
- Rules are predefined and public.
- Matching and liquidation operations can be proven as correct.
- Proofs are verified on Ethereum, making manipulation harder to hide.
Smart contract & circuit audits
Independent audits are published.
Audit reports are available for smart contracts and circuits. Keep this section as a dynamic list in your UI so audit titles, dates, and files stay current.
Liquidation system & insurance fund basics
Margin, liquidation, and insurance together.
Perpetual futures require liquidations to keep the system solvent. When account value falls below margin thresholds, liquidation occurs based on defined margin levels and actions. Lighter documents its liquidation flow and an insurance mechanism (LLP or insurance fund) for handling adverse scenarios.
How you can stay safe
User checklist
- start small, especially with leverage
- use stop loss or take profit when appropriate
- monitor margin and liquidation thresholds
- verify you are using official domains and links
- treat API keys like passwords: rotate, restrict, and store securely
Security FAQ
Answers to the core questions.
Has Lighter been audited?
Yes. Audit reports for smart contracts and circuits are published.
What does verifiable order matching mean?
The exchange provides cryptographic proof that matching followed predefined rules, and those proofs can be verified publicly.
What happens if something goes wrong at the rollup level?
The rollup contract includes controls for censorship-resistant transaction submission and an escape-hatch mode.
Is trading risk-free because it is audited?
No. Audits reduce risk but do not eliminate it. Leverage and market volatility can still cause losses.