Security Model

This page documents Rubicon's security architecture and the trust assumptions involved in using our platform.

System Architecture

┌─────────────────────────────────────────────────────────────────┐
│                         USER LAYER                               │
│  [Your Wallet] ◄──────► [Trading Interface] ◄──────► [Orders]   │
└─────────────────────────────────────────────────────────────────┘


┌─────────────────────────────────────────────────────────────────┐
│                      HYPERLIQUID LAYER                           │
│  [Order Book] ◄──────► [Matching Engine] ◄──────► [Settlement]  │
│  [Margin System] ◄──────► [Liquidation Engine]                  │
└─────────────────────────────────────────────────────────────────┘


┌─────────────────────────────────────────────────────────────────┐
│                       RUBICON ORACLE                             │
│  [Price Sources] ──► [Validation] ──► [setOracle()] ──► HL     │
└─────────────────────────────────────────────────────────────────┘

Trust Assumptions

What You Trust Hyperliquid For

Component
Trust

Order matching

Fair, deterministic execution

Margin accounting

Accurate balance tracking

Settlement

Correct PnL calculation

Custody

Secure fund storage

Hyperliquid is a production-tested L1 with significant TVL and trading volume.

What You Trust Rubicon For

Component
Trust

Oracle prices

Accurate ETF price feeds

Oracle uptime

Consistent 3-second updates

No manipulation

We don't exploit our oracle role

Oracle Security

Price Integrity

We ensure price accuracy through:

  1. Multiple sources — Cross-reference Polygon and Yahoo

  2. Validation — Reject prices outside ±20% of last known

  3. Transparency — Prices verifiable against public ETF data

Operational Security

Oracle infrastructure is protected by:

  • Key security — Oracle signing keys in secure storage

  • Monitoring — 24/7 alerting on anomalies

  • Access control — Minimal personnel with system access

What We Cannot Do

As oracle operators, we cannot:

  • Access or move your funds

  • Cancel your orders

  • Force liquidations at incorrect prices

  • See your private keys

We can only:

  • Publish prices to Hyperliquid

  • Those prices affect mark/liquidation calculations

Wallet Security

Your funds are secured by:

Non-Custodial Design

  • Your keys, your crypto — We never hold your private keys

  • Direct interaction — You sign transactions with your wallet

  • Hyperliquid custody — Funds held in HL smart contracts

Best Practices

  1. Use hardware wallet — Ledger/Trezor via MetaMask

  2. Verify transactions — Check what you're signing

  3. Secure seed phrase — Never share, store offline

  4. Separate wallets — Don't use main wallet for trading

Smart Contract Security

Hyperliquid Contracts

Rubicon trades on Hyperliquid's infrastructure:

  • Battle-tested with billions in volume

  • Multiple audits completed

  • Bug bounty program active

Our Contracts

Rubicon's oracle submission is off-chain:

  • No Rubicon smart contracts

  • No additional contract risk

  • Relies entirely on Hyperliquid

Risk Vectors

Oracle Risks

Risk
Mitigation

Price manipulation

Multiple sources, validation

Oracle downtime

Fallback chain, state persistence

Operator malice

Reputation, transparency

Key compromise

Secure key management

Market Risks

Risk
Mitigation

Liquidation

Use appropriate leverage

Gap risk

Reduce overnight positions

Funding costs

Monitor rates

Low liquidity

Use limit orders

Technical Risks

Risk
Mitigation

HL downtime

Outside our control

API issues

Retry logic, alerts

Network congestion

Hyperliquid handles

Incident Response

If Oracle Fails

  1. System automatically uses fallback sources

  2. Cache used for brief outages (60s max)

  3. Alerts notify operations team

  4. Manual intervention if extended

If Compromise Suspected

  1. Oracle immediately paused

  2. Investigation initiated

  3. Users notified via all channels

  4. Remediation implemented

Audit Status

Component
Status

Hyperliquid contracts

Audited (multiple firms)

Rubicon oracle code

Internal review

External audit

Planned

Bug Bounty

Report security issues:

  • Email: security@rubiconmarkets.com

  • Responsible disclosure appreciated

  • Rewards for valid findings

Security Checklist for Users

Before trading:

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