mev-beta/docs/SECURITY_PROCEDURES.md

# MEV Bot Security Procedures & Incident Response Plan

## 🚨 Emergency Contacts

**Security Incident Response Team:**
- Primary: Security Lead
- Secondary: Technical Lead
- Escalation: CTO/CEO

**Emergency Procedures:**
- **Immediate**: Stop all bot operations
- **Critical**: Secure private keys and funds
- **Urgent**: Assess impact and contain breach

---

## 🔒 Security Procedures

### Daily Security Checklist

- [ ] **Monitor Security Alerts**: Check for new vulnerability reports
- [ ] **Review Audit Logs**: Check for unusual access patterns
- [ ] **Verify Key Health**: Ensure all keys are active and not compromised
- [ ] **Check System Metrics**: Monitor for anomalous behavior
- [ ] **Backup Verification**: Confirm backups are current and accessible

### Weekly Security Tasks

- [ ] **Dependency Updates**: Review and apply security patches
- [ ] **Access Review**: Audit user permissions and access logs
- [ ] **Performance Analysis**: Check for suspicious resource usage
- [ ] **Configuration Audit**: Verify security settings remain intact
- [ ] **Incident Review**: Analyze any security events from the week

### Monthly Security Maintenance

- [ ] **Key Rotation**: Rotate encryption keys per policy
- [ ] **Security Testing**: Run comprehensive security test suite
- [ ] **Vulnerability Assessment**: Conduct thorough system scan
- [ ] **Documentation Update**: Keep security procedures current
- [ ] **Team Training**: Conduct security awareness session

---

## 🚨 Incident Response Plan

### Phase 1: Detection & Initial Response (0-15 minutes)

#### Automated Detection Triggers
- Unusual transaction patterns
- Failed authentication attempts > threshold
- Unexpected system shutdowns
- Resource consumption anomalies
- Private key access outside normal hours

#### Immediate Actions
1. **Alert Team**: Notify security response team
2. **Stop Operations**: Halt all bot activities immediately
   ```bash
   # Emergency stop command
   pkill -f mev-bot
   systemctl stop mev-bot
   ```
3. **Preserve Evidence**: Capture system state
   ```bash
   # Capture logs
   journalctl -u mev-bot --since="1 hour ago" > incident-logs.txt
   # Capture system state
   ps aux > incident-processes.txt
   netstat -tulpn > incident-network.txt
   ```

### Phase 2: Assessment & Containment (15-60 minutes)

#### Impact Assessment
- **Financial**: Check account balances and recent transactions
- **Operational**: Assess system compromise extent
- **Data**: Verify integrity of critical data
- **Access**: Review authentication logs for breaches

#### Containment Actions
1. **Isolate Systems**: Disconnect compromised systems
2. **Secure Keys**: Move funds to safe addresses if necessary
3. **Change Credentials**: Rotate all authentication credentials
4. **Network Isolation**: Block suspicious network traffic

### Phase 3: Eradication & Recovery (1-24 hours)

#### Root Cause Analysis
- Review audit logs thoroughly
- Analyze attack vectors used
- Identify security gaps exploited
- Document lessons learned

#### System Recovery
1. **Clean Installation**: Rebuild compromised systems
2. **Security Hardening**: Apply additional security measures
3. **Testing**: Verify system integrity before restart
4. **Gradual Restart**: Resume operations incrementally

### Phase 4: Post-Incident (24+ hours)

#### Documentation
- Complete incident report
- Update security procedures
- Share findings with team
- Report to stakeholders

#### Improvement
- Implement preventive measures
- Update monitoring systems
- Enhance detection capabilities
- Schedule security review

---

## 🔐 Key Management Security

### Private Key Security
- **Storage**: Hardware Security Modules (HSM) or secure enclaves
- **Access**: Multi-factor authentication required
- **Rotation**: Quarterly key rotation schedule
- **Backup**: Secure, encrypted, geographically distributed backups

### Encryption Key Management
```bash
# Generate strong encryption key
openssl rand -base64 32

# Environment variable setup
export MEV_BOT_ENCRYPTION_KEY="your_32_character_minimum_key_here"

# Verify key strength
echo $MEV_BOT_ENCRYPTION_KEY | wc -c  # Should be 32+ characters
```

### Key Rotation Procedure
1. **Generate New Key**: Create new encryption key
2. **Update Configuration**: Deploy new key to all systems
3. **Migrate Data**: Re-encrypt existing data with new key
4. **Verify**: Confirm all systems use new key
5. **Secure Disposal**: Securely delete old key

---

## 🛡️ Threat Model

### External Threats
- **Malicious Actors**: Attempting to steal funds or disrupt operations
- **Competitor Attacks**: MEV frontrunning or sandwich attacks
- **Network Attacks**: RPC endpoint compromise or manipulation
- **Supply Chain**: Compromised dependencies or infrastructure

### Internal Threats
- **Insider Threats**: Malicious or negligent employees
- **Configuration Errors**: Misconfigured security settings
- **Software Bugs**: Vulnerabilities in custom code
- **Operational Mistakes**: Human errors in procedures

### Mitigation Strategies
- **Defense in Depth**: Multiple security layers
- **Principle of Least Privilege**: Minimal necessary access
- **Continuous Monitoring**: Real-time threat detection
- **Regular Testing**: Ongoing security assessments

---

## 📊 Security Monitoring

### Key Metrics to Monitor
- **Transaction Success Rate**: Sudden drops may indicate attacks
- **Gas Price Anomalies**: Unusual gas prices may signal manipulation
- **Network Latency**: Increased latency may indicate MitM attacks
- **Authentication Failures**: Failed login attempts
- **Resource Usage**: CPU/Memory spikes may indicate DoS attempts

### Alerting Thresholds
```yaml
alerts:
  failed_transactions: >5 in 5 minutes
  authentication_failures: >3 in 1 minute
  gas_price_spike: >200% of normal
  network_latency: >5 seconds
  memory_usage: >90% for 1 minute
```

### Log Analysis
```bash
# Check for suspicious activity
grep "FAILED" logs/mev-bot.log | tail -20
grep "ERROR" logs/mev-bot.log | grep -i "security"
grep "WARN" logs/mev-bot.log | grep -i "auth"

# Monitor transaction patterns
grep "TRANSACTION" logs/mev-bot.log | awk '{print $3}' | sort | uniq -c
```

---

## 🧪 Testing Procedures

### Security Test Schedule
- **Daily**: Automated security scans
- **Weekly**: Manual security review
- **Monthly**: Penetration testing
- **Quarterly**: External security audit

### Test Categories
1. **Static Analysis**: Code vulnerability scanning
2. **Dynamic Analysis**: Runtime security testing
3. **Fuzzing**: Input validation testing
4. **Penetration Testing**: Simulated attacks
5. **Compliance**: Regulatory requirement verification

### Running Security Tests
```bash
# Static analysis
gosec ./...
golangci-lint run --enable=gosec

# Dependency scanning
go list -json -m all | nancy sleuth

# Fuzzing
go test -fuzz=FuzzRPCResponseParser -fuzztime=1m ./pkg/security/
go test -fuzz=FuzzKeyValidation -fuzztime=1m ./pkg/security/

# Race condition testing
go test -race ./...

# Integration security tests
./scripts/security-integration-test.sh
```

---

## 📋 Compliance & Auditing

### Audit Log Requirements
- **Who**: User/system performing action
- **What**: Action performed
- **When**: Timestamp with timezone
- **Where**: System/component location
- **Why**: Business justification/context

### Required Audit Events
- Private key access/usage
- Configuration changes
- Authentication events
- Transaction submissions
- System starts/stops
- Error conditions

### Log Retention
- **Security Logs**: 7 years
- **Audit Logs**: 5 years
- **Transaction Logs**: 3 years
- **System Logs**: 1 year

### Compliance Checks
```bash
# Verify audit logging is enabled
grep "audit" config/config.yaml

# Check log file permissions
ls -la logs/audit.log

# Verify log rotation
logrotate -d /etc/logrotate.d/mev-bot
```

---

## 🚀 Deployment Security

### Pre-Deployment Checklist
- [ ] **Security Tests**: All security tests pass
- [ ] **Vulnerability Scan**: No critical vulnerabilities
- [ ] **Configuration Review**: Security settings verified
- [ ] **Access Control**: Proper permissions configured
- [ ] **Monitoring Setup**: Security monitoring active

### Production Hardening
```bash
# File permissions
chmod 600 .env.production
chmod 700 keystore/
chmod 755 bin/mev-bot

# System hardening
sudo systemctl enable fail2ban
sudo ufw enable
sudo sysctl -w net.ipv4.conf.all.log_martians=1

# Service configuration
sudo systemctl edit mev-bot << EOF
[Service]
NoNewPrivileges=yes
PrivateTmp=yes
ProtectSystem=strict
ProtectHome=yes
ReadWritePaths=/opt/mev-bot/logs /opt/mev-bot/keystore
EOF
```

### Network Security
- **Firewall**: Block unnecessary ports
- **VPN**: Secure administrative access
- **TLS**: Encrypt all communications
- **Rate Limiting**: Protect against DoS
- **DDoS Protection**: Cloud-based protection

---

## 📞 Escalation Procedures

### Severity Levels

#### Critical (P0) - Immediate Response
- Active security breach
- Funds at immediate risk
- System completely compromised
- **Response Time**: 5 minutes
- **Escalation**: CEO, CTO, All hands

#### High (P1) - Urgent Response
- Potential security vulnerability
- Unusual system behavior
- Failed security controls
- **Response Time**: 30 minutes
- **Escalation**: Security team, Engineering leads

#### Medium (P2) - Standard Response
- Security warning alerts
- Non-critical security events
- Policy violations
- **Response Time**: 4 hours
- **Escalation**: Security team

#### Low (P3) - Routine Response
- Security informational events
- Compliance notifications
- Routine security maintenance
- **Response Time**: 24 hours
- **Escalation**: Security team lead

### Communication Plan
1. **Internal Notification**: Slack #security-alerts
2. **Management Briefing**: Email with impact assessment
3. **Customer Communication**: If customer-facing impact
4. **Regulatory Reporting**: If required by law/regulation
5. **Public Disclosure**: Following responsible disclosure timeline

---

## 🔄 Continuous Improvement

### Security Metrics
- Mean Time to Detection (MTTD)
- Mean Time to Response (MTTR)
- False Positive Rate
- Security Test Coverage
- Vulnerability Remediation Time

### Regular Reviews
- **Weekly**: Security event review
- **Monthly**: Security metrics analysis
- **Quarterly**: Threat model update
- **Annually**: Comprehensive security program review

### Training & Awareness
- **Onboarding**: Security awareness for new team members
- **Quarterly**: Security update training
- **Annual**: Comprehensive security training
- **Ad-hoc**: Incident-based training sessions

---

*Last Updated: $(date)*
*Version: 1.0*
*Owner: Security Team*