What can go wrong as a guardian?

The primary role of a guardian is to ensure their fedimint server has a consistent supply of electricity and internet access to allow for continuous automated running of the federation.

Guardians are also entrusted with the shared responsibility of custodying and safeguarding the money and data of their federations, which carries several risks and challenges, including:

• Hacking – While Fedi uses a best-in-class approach to automate protection against cybersecurity threats, guardians are prime targets of these threats as they are responsible for securing federation resources.
• Fraud + Theft – If a majority of guardians collude to steal federation resources, innocent guardians may be lumped in with the bad actors. Consequently, guardians should know and trust one another.
• Regulation – Familiarity with local laws is paramount given that providing custodial services could subject guardians to increased scrutiny as money transmitters depending on their local jurisdiction.