# Security and Compliance

#### **Who are my counterparties?**

Counterparties in the darkpool are other platform users, which could include both **retail** and **institutional traders**. Specific counterparty identities remain **anonymous** to ensure privacy and security.&#x20;

#### **Does everyone have to complete KYC/KYB before participating in the Darkswap?**

No KYC is required initially. KYC may be prompted only during withdrawal to an external wallet if necessary.

#### **How does the matching engine work?**

The matching engine operates in an **FHE** environment, allowing it to process encrypted orders for asset pairs, prices, and quantities without accessing or revealing the underlying data.

#### **How do the Book nodes work?**

**Book nodes** use **MPC** to collectively decrypt and determine the outcome of matches, without exposing specific order details to any single node.
