Agentic Wallets FAQ 3: How Secure Are Agentic Wallets?

Agentic wallets use four defensive layers to limit damage when agents malfunction or are compromised:

Layer 1 - Enclave isolation: Private keys remain within Trusted Execution Environments (hardware-isolated secure enclaves), preventing agents from accessing them. Even if an attacker fully compromises the agent's host environment, they cannot extract the private key.

Layer 2 - Programmable spending limits: Session caps (e.g., $500 per 24 hours) and transaction limits (e.g., $100 per transaction) create hard boundaries that cannot be bypassed through prompt injection, logic errors, or AI hallucinations. These are enforced at the infrastructure level, not relying on agent logic.

Layer 3 - Built-in KYT screening: Every transaction is checked against sanctions lists and known malicious addresses before execution. Transfers to flagged addresses are automatically blocked with no agent action required.

Layer 4 - Real-time monitoring: The CDP Portal provides transaction visibility and configurable alerts for unusual spending patterns, enabling human intervention before spending caps are exhausted.

Worst-case scenario: Even if an agent is fully compromised through prompt injection, logic bugs, or host environment breach, the maximum possible loss is limited to the configured spending caps—not unrestricted access to all funds.