Client-controlled wallets, advisory oversight.

In some situations, a client-controlled wallet may be the right structure for digital assets that require on-chain interaction. In those cases, the client controls the wallet and the recovery path. Protocol Wealth’s role is limited by documented permissions, strategy parameters, and human fiduciary oversight.

In a Fordefi wallet there is no single private key. Signing authority is divided into cryptographic shards: Fordefi holds one shard and Protocol Wealth holds one shard. The client holds the ultimate backup, and Protocol Wealth cannot recover the wallet on its own. Assets can be sent only to addresses the client has approved. In a Fordefi wallet, policy changes that expand or alter permissions require the required client and firm approvals.

This structure is designed to separate advisory authority from unilateral control. It remains subject to client agreements, system configuration, compliance review, and legal analysis.

Fordefi may be used as institutional MPC (multi-party computation) wallet technology to apply policy rules to a client-controlled wallet — a whitelist-bounded managed sleeve. The client administers the wallet's Rules Policy and holds final approval. The default posture is deny-first: activity is blocked unless a specific permission is approved. The approved allowlist can include third-party and DeFi contracts — for example vaults surfaced through vaults.fyi (such as Morpho, Midas, Lagoon, or Upshift vaults), a DEX like Uniswap, a lending market like Aave or Morpho, or the Across bridge. Within the strategies a client has approved, Protocol Wealth may act on a discretionary basis; where it is simply enabling the client's own wallet to interact with a vault at the client's direction, that step is non-discretionary. Protocol Wealth cannot add destinations or move assets outside the client-approved whitelist, and policy changes that expand or alter permissions require the required client and firm approvals.

Fordefi is wallet and policy infrastructure. It is not a qualified custodian, and using it does not, on its own, make an arrangement non-custodial. Wallet policy engines also have limits — for example, they may not fully inspect nested transaction data in every on-chain interaction — so the firm pairs policy rules with destination allowlists, amount and allowance limits, multi-approver rules for material transactions, and transaction review where needed.

The portal wallet (Turnkey). Protocol Wealth does not recover wallets. The client’s passkeys are the only way in: if the client loses every passkey for the wallet, the client may lose access to anything held in it. That is why the portal asks the client to use a passkey their device keeps in sync (such as iCloud Keychain or Google Password Manager) and, once the wallet is set up, to add a backup passkey on another device — a security key, or a phone that isn’t signed in to the same passkey manager. A backup kept in the same account as the main passkey is lost along with it.

Fordefi wallets. Where the client engages Coincover, Coincover keeps an encrypted backup of the Fordefi key material. The client completes Coincover’s own process, the decryption key can be delivered only to the client, and Protocol Wealth cannot receive it.