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

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🔒 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

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🚨 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

   # Emergency stop command
   pkill -f mev-bot
   systemctl stop mev-bot
   

3. Preserve Evidence: Capture system state

   # 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

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🔐 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

# 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

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🛡️ 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

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📊 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

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

# 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

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🧪 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

# 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

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📋 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

# 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

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🚀 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

# 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

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📞 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

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🔄 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

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