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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​

  1. A user initiates a deposit — Public assets are prepared for entry into the Bermuda pool.
  2. The depositor address is screened — The request is checked against the active policy through Predicate-backed attestation flow. If the address fails screening, the deposit is rejected.
  3. Deposit-time compliance data is attached — If the request is approved, the client receives the compliance artifacts needed by the deposit proof, and the deposit is associated with a randomly assigned deposit_id.
  4. Funds enter shielded state — The pool verifies the proof and authorization, then inserts the new note commitment into the shielded state.

Why It Matters​

This stage prevents Bermuda from becoming an open entry point for illicit funds. Compliance is applied before assets become private, while approved funds can still move through the same shielded transaction engine as ordinary transfers.

Pre-shield checks are also only the first layer. If a depositor address is later flagged after the deposit has already been accepted, the associated deposit_id lineage can still be handled through retroactive flagging and withdrawal-time enforcement.