Incident Response Flow
Ledgity is built to operate reliably under normal conditions, but the protocol also includes a defined response framework for anormal or unexpected situations. The goal is always the same:
Protect user funds first. Stabilize the system second. Restore normal operation responsibly.
Incident response applies to both:
On-chain irregularities (unexpected contract behavior, exploit attempts, liquidity anomalies)
Off-chain disruption (delays in RWA repayment, market stress affecting liquidity timing)
Detection
Monitoring occurs continuously at multiple levels:
Smart contract event tracking
Withdrawal, mint/burn, and state anomalies
Liquidity buffer monitoring
Sudden or large outflows
RWA repayment schedule tracking
Expected vs actual cash flow reconciliation
Automated alerts & dashboards
Internal operational monitoring
Community + partner escalation
Open reporting channels via Discord / Telegram
If anormal behavior is detected, the Council is immediately alerted.
Initial Action: Temporary Pause
The protocol includes a Global Pause mechanism that allows deposits and withdrawals to be temporarily stopped.
This does not move funds
It only prevents new inflows/outflows until conditions are reviewed
This mechanism prevents cascading effects during uncertainty.
Pause may be triggered when:
Liquidity buffer is unexpectedly depleted
Off-chain repayment delays exceed predefined tolerances
Smart contract inconsistencies are detected
Security audit or exploit alerts require investigation
Assessment & Diagnosis
Once paused, the Council performs structured investigation:
On-chain contract state
Confirm integrity and balance correctness
Vault accounting vs. PPS
Ensure yield calculations remain valid
RWA portfolio cash flow
Confirm repayment schedule status
Custody and banking operations
Ensure off-chain balances are intact
If needed, external security or financial auditors may be engaged.
Resolution Actions
Depending on the diagnosis:
Smart contract anomaly
Patch and redeploy through audited upgrade path
Liquidity shortage due to timing
Coordinate scheduled repayment release
RWA repayment delay
Communicate adjusted withdrawal timeframes
Confirmed malicious exploit
Execute defensive withdrawal, coordinate fund protection, publish forensic report
The priority is protecting capital, not rushing to reopen operations.
Communication
Transparent communication is critical. Users are informed through:
Discord announcements
Telegram updates
Website banner (if needed)
Formal written post-mortem (for major incidents)
DAO governance update
No silent interventions. No hidden decisions.
Resumption
Once the system is confirmed stable:
The pause is lifted
Regular withdrawals and deposits resume
A summary of findings is provided to the DAO
If applicable, governance proposes long-term mitigation adjustments
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