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Architecture & Trust Model

This page explains where Embedded Wallet components live, what each part can access, and the trust assumptions you should design around.

High-level components

  • User device (client): runs factor capture + key derivation and signs user-authorized actions.
  • Smart account (on-chain): holds funds and enforces spending policies and recovery rules.
  • App backend (optional): coordination, notifications, policy evaluation, storage of recovery artifacts (never plaintext keys).
  • Passkeys: a separate user-confirmation system (WebAuthn) for sensitive actions.
  • Policy Engine: the rules layer that defines allowed actions and recovery configuration.

Data placement: what lives where

Data / CapabilityOn-deviceOff-chain backendOn-chain
Raw biometrics / visual input
Derived controlling key (plaintext)✅ (ephemeral)
Smart account code + state
Recovery configuration (timelocks, thresholds)✅ (as UI/config)✅ (as config)✅ (as enforced rules)
Passkeys (WebAuthn credentials)✅ (authenticator)
Timelocked fallback tx (if enabled)✅ (stored)✅ (executed)
Guardian approvals (if enabled)optional

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