8.2 Key Management

If you use automation, key management is the main place you can screw yourself.

Principles:

1. Segregate funds

   • Don’t use your “all my net worth” wallet as the trading wallet.

   • Use dedicated wallets for:

     • Arbitrage capital.

     • Fee buffer.

   • Worst case, you lose what’s in that silo, not everything.

2. Least privilege

   • Minimize what you grant:

     • If possible, sign pre-approved transaction templates instead of giving broad signing rights.

     • Use hardware wallets or secure modules where the design allows.

3. Rotation and hygiene

   • Rotate keys if you suspect compromise.

   • Never paste private keys anywhere near logs, screenshots, or “debug” scripts.

   • Don’t share your setup with random “devs” or “friends” to “help you”.

4. Redline:

   • If any flow asks you for your seed phrase, that flow is garbage. Capture OS / Capture Bot must never require your seed phrase. Ever.

If you are not confident about secure key handling, you are not ready for automated on-chain arbitrage. Full stop.