Security & Audits

↝ Decentralized Architecture

Aelio operates on a fully decentralized, non-custodial infrastructure. No central party can control user funds, override strategies, or alter fund mechanics.

All core functions—deposits, fee handling, rebalancing—are executed by immutable smart contracts.

The system includes:

• A contract-controlled vault managing all user assets • A rebalancer contract that acts only on AI-generated signals • Modular contract architecture, allowing future upgrades via on-chain governance • Role-restricted admin functions (for emergency situations), protected by timelocks and multisig wallets

This setup ensures that user funds remain under verifiable, automated control, without needing to trust a central entity.

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↝ Smart Contracts & Audit Roadmap

Security begins with the code. Aelio’s smart contracts are undergoing a multi-stage review process, combining internal testing and independent audits.

Here’s the audit plan leading up to launch:

• Internal code review and fuzz testing • Formal verification of the AI-driven allocation logic • A full, independent audit by a leading Web3 security firm before going live • Continuous monitoring after deployment via on-chain alerting tools

All audit results will be made public, directly linked within the platform’s documentation—for full transparency and accountability.

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↝ Managing AI & DeFi Risks

Because Aelio is both an AI system and a DeFi protocol, it requires multi-layered safeguards.

AI-specific protections include:

• A meta-model that monitors for behavioral anomalies • Confidence thresholds that block decisions under high uncertainty • Input validation and data cleansing to filter out bad signals

DeFi-specific measures include:

• On-chain checks for slippage, liquidity depth, and gas cost efficiency • Automated hedging in volatile markets • Emergency pause functions with predefined triggers

Together, these systems ensure that Aelio stays stable, resilient, and autonomous, even during unpredictable market conditions.

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↝ Oracles & Data Integrity

Aelio’s AI relies heavily on real-time data—so data accuracy and reliability are critical.

The protocol uses a redundant oracle system to avoid single points of failure and ensure clean signals:

• Chainlink provides secure, decentralized price feeds • Backup APIs from CoinGecko, Glassnode, and internal data pipelines • Proprietary off-chain infrastructure to stream sentiment data from Twitter, Reddit, and Discord • Internal checks to detect anomalies and timestamp delays

All data is cross-verified before it’s accepted by either the AI engine or the smart contract logic—guaranteeing that portfolio decisions are based on reliable, up-to-date market information.