# Compliance Tools

Scuba Protocol is designed from day zero with compliance into consideration. It provides several innovative ways which were combined to provide an easy compliance experience for users. The privacy we support is legal privacy. We support the well-being of our users without harming others. It is the cornerstone of the value system of Scuba Protocol. We have a strong faith that this value will generate a more sustainable gain for Scuba Protocol users and Scuba Protocol stakeholders as well. The compliance tools provided by Scuba Protocol includes but are not limited to:

### ZKP-enabled asset tracing for audibility

Scuba Protocol's sidechain supports auditable privacy-preserving assets using SNARK-friendly hybrid encryption and advanced Zero-knowledge Proof technologies such as Matrix sigma and Binary-checking-friendly MegaPlonk.

### Soul-bound token based KYC and transfer limit system

Users with certain soul-bound tokens will be considered as having passed certain levels of KYC. This mechanism provides a flexible transfer limit system which allows users to select the level of KYC to pass and therefore increase the limits of their transfer amount.

### Off-chain compliance risk analysis and reaction system

Scuba Protocol has built an off-chain indexing service that can monitor Scuba Protocol related transactions on source chains and destination chains in a multichain environment. It provides useful information for both the compliance risk analysis and the security of the system.

### Token-issuer level compliance interfaces

Scuba Protocol allows ERC-20 tokens with compliance interfaces in the EVM-compatible realm and provides similar compliance tool interfaces when the tokens are converted to shielded tokens on Scuba Protocol's sidechain.
