What Makes Kvants Vaults Safe: The Truth About Audits, Oracles and Self-Custody

In today’s DeFi landscape, capital does not simply chase the highest yield. It gravitates toward systems where security is provable, transparent, and constantly monitored. The idea that yield alone can differentiate a product is outdated. Users now evaluate how an entire security stack works together: smart-contract architecture, audit history, risk controls, and the reliability of the underlying execution layer.

Kvants Vaults were built around this principle from the very beginning. Every component, from contract design to execution flows, was engineered for long-term capital protection. With transparent smart contracts, audited logic, and a build-on-Drift infrastructure that inherits one of Solana’s strongest security frameworks, the vaults operate with a risk-first mindset.

This article explains why Kvants Vaults were designed for long-term resilience, how Drift’s security architecture strengthens each strategy, and why user-controlled custody remains the ultimate protection in on-chain asset management.

Get started with Kvants Vaults today and seamlessly access automated, market-neutral quant strategies built for stability and real on-chain performance. Begin here: https://app.kvants.ai

At the heart of every Kvants Vault lies an audited smart-contract system where every major function has been verified for correctness. Deposit flows, withdrawals, rebalancing, hedging logic, and execution parameters have undergone external review, with auditors focused on several critical dimensions.

Auditors tested the contract to ensure no unexpected state changes can be triggered by edge-case inputs or malicious interactions. Each state update must follow a predictable and encoded path.

Only the vault’s internal logic can initiate trades. There are no admin shortcuts, no hidden functions, and no privileged operators who can override the system.

All pricing is sourced from Drift’s oracle feeds. This ensures every trade reflects real market data and that pricing manipulation attempts are rejected at the contract level.

The vault cannot exceed pre-defined risk thresholds. Position sizing, leverage caps, and hedging rules are all embodied in deterministic code.

The result is a system that acts only in ways explicitly defined in the audit. There is no discretionary decision-making, no off-chain execution logic, and no hidden pathways that could place user capital at risk.

The Key Outcome Is Simple:

Funds deposited in a Kvants Vault are governed purely by audited code, not by human judgment.

Kvants Vaults integrate directly with Drift Protocol, one of the most security-focused trading platforms in the Solana ecosystem. This is not a typical perpetuals DEX. Drift is built with conservative engineering principles usually associated with regulated exchanges.

Kvants Vault users indirectly benefit from all layers of Drift’s architecture. Four of them are particularly important.

Drift uses high-quality oracles such as Pyth and Switchboard, providing real-time, tamper-resistant market data. These feeds drive the margin system, funding rates, liquidation calls, and insurance-fund protections.

Every position opened or adjusted by a vault strategy is anchored to accurate market conditions.

Each strategy within a vault operates through isolated sub-accounts. If one strategy is hedging BTC and another is running momentum exposure, their collateral and risk profiles remain separate. No contagion can occur across strategies.

Before any trade is executed, Drift’s risk engine performs a pre-trade validation. If a trade violates any exposure, margin, or leverage rule, the transaction simply does not go through. This adds a layer of protection that prevents unexpected execution behavior.

Drift has processed tens of billions in historical volume, maintained functionality throughout periods of extreme volatility, and demonstrated reliability during multiple Solana congestion events. Its liquidation efficiency and engine stability are among the strongest in the ecosystem.

Kvants selected Drift because its execution behaves like a transparent, on-chain version of a regulated matching engine. Every component can be verified publicly, and every trade follows strict risk rules.

Kvants Vaults do not operate alongside Drift. They operate on top of it, inheriting every security feature while adding their own safeguards.

Vault contracts strictly enforce leverage limits, strategy-specific trade parameters, hedging boundaries, and emergency execution blockers if oracle data becomes unreliable. These rules ensure the vault cannot accidentally or intentionally take unintended directional exposure.

Only the trading instructions explicitly defined during the audit are permitted. This means the contract cannot interact with external protocols, cannot improvise trading logic, and cannot perform arbitrary execution. Everything is predetermined.

Every funding payment, position fill, or hedging update is logged immediately on-chain and reflected in the vault’s net asset value. Users get transparent, real-time insight into strategy performance, something traditional finance cannot provide.

Kvants does not hold user funds. Deposits go directly into audited smart contracts that interact with Drift. Kvants is KYB-verified on Drift, ensuring institutional-grade operational transparency, yet the system remains fully self-custodial.

Users retain complete ownership of their assets throughout the entire lifecycle of a vault position.

A defining principle of Kvants Vaults is that users always maintain control of their own assets. Kvants cannot move funds, withdraw them, or interfere with user balances in any form.

As long as users safeguard their private keys and operate through trusted wallets such as Phantom, Backpack, or Ledger, their capital remains protected.

This model eliminates several common risks:

• Centralised exchange failures

• Withdrawal freezes

• Backend or hot-wallet breaches

• Operator-level compromises

• Counterparty dependency

Because capital is stored in audited smart contracts and not in company-controlled wallets, the ultimate security responsibility sits with the user rather than a centralized custodian.

In the long run, DeFi will only attract and retain meaningful capital if users trust the infrastructure. Kvants Vaults were designed with that belief at the core. By integrating directly with Drift’s risk-first execution layer, auditing every component of vault logic, and keeping users in full control of their assets, Kvants has built a system that minimizes risk across every layer.

Security is not a marketing angle. It is the underlying engine that enables users to deploy capital with confidence and to keep it there through volatile market cycles.

1. Drift Oracles Documentation

( https://docs.drift.trade/trading/oracles )

2. Drift Architecture Deep Dive

Inside Drift: Architecting a High Performance Orderbook on Solana

( https://extremelysunnyyk.medium.com/inside-drift-architecting-a-high-performance-orderbook-on-solana-612a98b8ac17 )

3. Drift Risk Engine Overview

Drift v2: Under the Hood of Solana’s Leading Perp DEX

( https://defi-planet.com/2025/07/solanas-secret-weapon-breaking-down-the-hype-around-drift-protocol-v2/ )

4. Pyth Case Study: Drift Protocol

( https://www.pyth.network/blog/drift-protocol-revolutionizing-decentralized-derivatives-i-pyth-case-study )

5. Binance Research: Drift Hybrid Liquidity Infrastructure

( https://www.binance.com/en/square/post/8436123291034 )

BONUS: Drift Main Docs

( https://docs.drift.trade )

Get started with Kvants Vaults today and seamlessly access automated, market-neutral quant strategies built for stability and real on-chain performance. Begin here: https://app.kvants.ai