Pre-Shield Check
Before any funds enter Bermuda's shielded pool, they pass through a pre-shield compliance check. This is the first line of defense — ensuring that only clean, verified deposits are accepted into the privacy layer.
How It Works
- User requests to deposit — A user initiates a shield transaction to move tokens into the pool.
- Address screening — The depositing address is checked against sanctions lists, deny-lists, and risk databases. If the address is flagged, the deposit is rejected.
- Funds enter the pool — If no risk is detected, the deposit is accepted and the user's shielded balance is credited privately.
If the depositor later turns out to be a bad actor — for example, their address is added to a sanctions list after the deposit — the funds can be flagged retroactively inside the pool.