# Trust Framework {% hint style="info" %} Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: [254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)). Research Partner: Base58 Labs contributes execution research, systems modeling, and risk design. {% endhint %} {% hint style="success" %} Research context: Base58 Labs acts as a Research Partner supporting execution research, systems validation, and control design. {% endhint %} Trust in an execution platform is an engineering property. On BASIS, trust is built from deterministic execution, mathematical constraints, explicit state transitions, conservative risk controls, verifiable reporting, and internationally certified management systems. This framework is implemented through: * BHLE infrastructure with sub-50μs latency, 100K+ OPS, and proprietary routing infrastructure * structural alpha capture through execution precision and fragmented liquidity access * state machine risk controls that define when the system can run, pause, reconcile, and resume * audit trails that explain what happened, when it happened, and why it happened * internationally accredited ISO certification for information security and IT service management, publicly verifiable on IAF CertSearch ## 1) Trust begins with precise definitions If a term can be misunderstood, it should be defined once and used consistently everywhere. | Term | BASIS meaning | Not implied | | --------------------- | ------------------------------------------------------------------------------------------------ | ------------------------------------ | | Market neutral | Directional exposure is minimized by construction | Directional risk is fully eliminated | | Quantity preservation | Asset quantity is preserved through same-token 1:1 conversion between native assets and stTokens | Fiat value is preserved | | USD-equivalent | Display and reporting reference only, shown in USDT | Fixed redemption to USD | | Execution precision | Routing and matching logic are optimized for deterministic fills and structural alpha capture | Guaranteed profit | {% tabs %} {% tab title="1:1 conversion scope" %} Same-token conversion on BASIS is limited to: * BTC → stBTC * ETH → stETH * SOL → stSOL * PAXG → stPAXG Cross-asset swaps are not part of the staking conversion model. {% endtab %} {% tab title="Wallet model" %} * Funding Wallet holds native assets used for deposit and withdrawal * Staking Wallet holds stTokens used for staking and reward accrual * BTC deposits use a BASIS-assigned address unique to the account * ETH, SOL, and PAXG deposits use a connected Web3 wallet {% endtab %} {% endtabs %} ## 2) Trust requires stop conditions A credible platform must be able to stop. Maximum activity is not the objective. Controlled survivability is the objective. 🛡️ {% stepper %} {% step %} **BSCB** Sentinel Circuit Breaker is the immediate protective trigger when loss risk, venue instability, reconciliation failure, or control-limit breach is detected. {% endstep %} {% step %} **DMM** Defensive Maintenance Mode is the controlled pause state used for investigation, balance verification, venue review, and recovery planning. {% endstep %} {% step %} **Re-enable** Strategy activity resumes only after reconciliation, root-cause review, and explicit operational clearance. {% endstep %} {% endstepper %} {% hint style="warning" %} **Operating State Transitions** * **RUNNING** — Standard operation within defined limits * On BSCB trigger → enters **BSCB** constrained mode * On escalation → enters **DMM** (Defensive Mode) * Return path: reconciliation → venue and control validation → explicit operator re-enable {% endhint %} Trust increases when pause logic is deterministic, documented, and enforced by state machine rules rather than ad hoc judgment. ## 3) Trust is measurable through auditability and traceability Each strategy module should maintain a complete operating record. | Record | Minimum content | Trust objective | | ---------------------- | --------------------------------------------------------------- | ----------------------------------- | | Strategy specification | Objective, venue eligibility, parameter bounds, execution logic | Explain intended behavior | | Risk specification | Limits, stop conditions, exposure caps, recovery rules | Explain protection logic | | Event log | State transitions, triggers, timestamps, operator actions | Explain what changed | | Reconciliation record | Pre-state balances, post-state balances, exceptions, resolution | Explain asset integrity | | Change record | Version, rationale, approval, deployment timestamp | Explain why a modification occurred | | Routing telemetry | Latency, fill quality, venue path, rejection reasons | Explain execution precision | You should be able to answer the following without guesswork: * What happened * When it happened * Which control triggered * Which balances changed * Why the system resumed ## 4) Trust is operational through fragmentation and execution design BASIS interacts with third-party exchanges and protocols. That creates venue and counterparty risk. The response is not blind concentration. The response is controlled fragmentation. {% tabs %} {% tab title="Counterparty control" %} BASIS follows liquidity fragmentation principles: * avoid single-venue dependency where feasible * score venue health continuously * restrict or blacklist degraded venues * diversify liquidity access paths * reconcile balances after material events {% endtab %} {% tab title="Execution control" %} BASIS uses BHLE execution infrastructure designed for: * sub-50μs decision latency * 100K+ OPS throughput * proprietary routing infrastructure * deterministic order handling * mathematical constraints on risk and inventory transitions {% endtab %} {% endtabs %} Execution quality is not just a performance metric. It is part of the trust model. Better routing, tighter control loops, and deterministic failover improve structural alpha capture while reducing avoidable operational loss. ## 5) Trust is earned through honest risk disclosure Risk disclosure is part of the product. It must describe what can fail and how the system responds. {% hint style="warning" %} BASIS does not use guaranteed return language. Market-neutral design reduces directional exposure but does not remove market, venue, latency, custody, or smart-contract risk. {% endhint %} A credible disclosure should make the following clear: * displayed USDT values are accounting references only * native assets, not USDT, are used for deposits and withdrawals * same-token 1:1 conversion preserves unit quantity, not market value * third-party venue outages can impair execution, settlement, or withdrawal timing * fixed pools can be unstaked only after the lock-up period ends * rewards accrue in real time as the same stToken in the Staking Wallet * unstake actions apply to the full staked position, with the claimable amount auto-credited to the Staking Wallet as stToken after a mandatory 7-day unstaking buffer ## 6) Trust is documented, not implied BASIS documentation is intended to provide a complete and accurate operating picture, from architecture and execution controls to reconciliation and risk management. Trust on BASIS is grounded in: * a Seychelles IBC operating entity * LEI-based institutional identity * research support from Base58 Labs as Research Partner * deterministic execution and state machine controls * auditable records and explicit failure handling * ISO/IEC 27001:2022 certification for the Information Security Management System under certificate number SC62455E * ISO/IEC 20000-1:2018 certification for the IT Service Management System * public certification transparency through IAF CertSearch That is the standard for an execution platform designed around precision, survivability, and structural alpha capture. ## Compliance posture and institutional assurance BASIS operates with an institutional-grade trust model that combines engineering controls, operational discipline, and internationally accredited certification. BASIS DIGITAL INFRASTRUCTURE LTD maintains active certification for information security and IT service management, with public verification available through IAF CertSearch. The ISO/IEC 27001:2022 certification below applies directly to the design and development of software and quantitative research systems and to the management of associated IT infrastructure and information security. It is accredited within the IAF (International Accreditation Forum) framework. ### ISO/IEC 27001:2022 certification details | Field | Details | | ------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------- | | Certificate Number | SC62455E | | Standard | ISO/IEC 27001:2022 | | Status | Active | | Last Updated | March 27, 2026 | | Certified Entity | BASIS DIGITAL INFRASTRUCTURE LTD | | Address | Room 306, Victoria House, P.O Box 673, Victoria, Mahe, Seychelles | | Scope | The Design and Development of Software and Quantitative Research Systems and the Management of Associated IT Infrastructure and Information Security | | Accreditation | IAF (International Accreditation Forum) | | Verification | [Verify on IAF CertSearch](https://www.iafcertsearch.org/certification/VDrwBpB8mD2nw5ykj5zxSANH) | ### Additional active certification | Standard | Certified Entity | Status | Public Verification | | -------------------- | -------------------------------- | ------ | ------------------------------------------------------------------------------------------------ | | ISO/IEC 20000-1:2018 | BASIS DIGITAL INFRASTRUCTURE LTD | Active | [Verify on IAF CertSearch](https://www.iafcertsearch.org/certification/1IbVSdVuBbykRHSgkfAo8mBE) | Certified entity record: [Entity Record on IAF CertSearch](https://www.iafcertsearch.org/certified-entity/WTmKlSOrxvhkPKrCUIdWYEgv) These certifications reinforce formal governance for information security, service management, control execution, and continuous operational accountability across the BASIS operating model. ## Regulatory Compliance & Certifications BASIS holds third-party compliance certifications for SOC and GDPR standards, issued by SE Registrar. Both certificates are publicly verifiable: * **SOC Certificate**: ID `6489580/COC/SC`, [Verify](https://seregistrar.us/verify-your-certificate/) * **GDPR Certificate**: ID `6489581/COC/SC`, [Verify](https://seregistrar.us/verify-your-certificate/) ## Associated legal entities | Entity | Jurisdiction | Role | | ---------------------------------- | ------------------------------------------------------------------------------------------------------ | ----------------------------------- | | BASIS DIGITAL INFRASTRUCTURE LTD | Seychelles IBC ([LEI: 254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)) | Platform operator | | Base58 Labs LTD (Co. No. 17094713) | England & Wales, UK | Execution infrastructure & research | Base58 Labs LTD is registered at 399-405 Oxford Street, Mayfair, London, W1C 2BU and is publicly verifiable on [Companies House](https://find-and-update.company-information.service.gov.uk/company/17094713). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.basis.pro/welcome/trust-framework.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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