VARA ComplianceLive on Solana Devnet

VARA Compliance
& Risk Disclosure

Machine-readable regulatory filing for Lattice — a non-custodial sealed-bid batch auction DEX on Solana. Prepared under VARA Rulebook V2.0 (January 2026).

Non-custodial
PDA vaults only
Front-running
Cryptographically impossible
Audit status
Pre-audit · devnet only
Program ID
AW8zeS7…F6iV
Risk Disclosure API

Machine-readable endpoint

terminalGET /api/compliance/disclosure ↗
curl -s https://lattice.xyz/api/compliance/disclosure | jq .
Full disclosure JSON ↗Summary format ↗Full compliance doc (.md) ↗
Risk Assessment

Risk factors

Loading from API…
Jurisdictions

Regulatory status by region

🇦🇪
UAE / Dubai · VARA

Protocol likely exempt (non-custodial); front-end operator may require VASP notification under VARA Rulebook V2.0

Exempt
🇪🇺
EU · MiCA

Monitoring — DeFi carve-out under MiCA Article 4(3); EC DeFi report expected

Review
🇸🇬
Singapore · MAS

Exempt under MAS PS Act if no Singapore users are actively solicited

Exempt
🇬🇧
United Kingdom · FCA

Non-custodial DEXs under FCA review — legal opinion recommended pre-launch

Review
🇺🇸
USA · SEC / FinCEN

HIGH RISK — US user access restricted pending SEC/CFTC regulatory clarity

High risk
VARA Rulebook V2.0

Classification & compliance controls

Classification
Custody of user funds
None — PDA vaults only✓
Counterparty risk
None — trustless settlement✓
Front-running capability
Cryptographically impossible✓
Information privilege
None — sealed until clearing✓
Wash trading profitability
Zero — uniform price✓
Native token issuance
No governance token✓
Fiat on/off ramp
None — token-to-token only✓
Classification pathway
Non-custodial smart contract protocol — DeFi carve-out under VARA Law No. 4/2022
Market abuse controls
✓SHA-256 commit-reveal: order parameters sealed until after commit window closes
✓Walrasian uniform clearing price: all matched orders fill at identical p*
✓SlashUnrevealed: 0.001 SOL penalty for unrevealed orders (anti-spoofing)
✓Jito private relay: transactions bypass public mempool
✓Batch window: intra-block manipulation impossible
AML mitigations
Autonomous Agent

AI agent disclosure

Model
Claude Haiku (claude-haiku-4-5)
Payment protocol
x402 HTTP-native micropayment
Order fragmentation
TWAP with LLM-guided slice count
✓ YESHuman oversight
✓ YESOn-chain audit trail
✓ YESAgent enabled
Smart Contract

Security properties

security.audit
language→Rust / Anchor 0.30.1
network→Solana devnet · Program AW8zeS7…F6iV
reentrancy→Prevented — Solana single-threaded execution
overflow→Rust checked arithmetic + u64 BN math
front-run→Impossible — commit-reveal cryptographic sealing
griefing→slashUnrevealed — 0.001 SOL penalty, order excluded
vault auth→Pool PDA controls vault — no admin key
audit→Pre-audit (hackathon). Full audit required pre-mainnet
upgrade→Deployer holds authority → recommend Squads multisig
Pre-mainnet

Compliance roadmap

1
Smart contract audit
Ottersec / Sec3 / OShield
Pre-mainnet
2
Upgrade authority → Squads multisig + 7d timelock
Protocol team
Pre-mainnet
3
Front-end sanctions screening
Chainalysis / TRM Labs
Pre-launch
4
VARA VASP notification filing
UAE counsel
Pre-launch
5
Privacy policy + Terms of Service
Legal counsel
Pre-launch
6
Legal opinion on DeFi exemption
VARA-specialist counsel
Q3 2026
7
Ongoing transaction monitoring
TRM Labs
Post-launch
Market precedent

Analogy to regulated auctions

Mechanism
Lattice
NYSE Opening Auction
Euronext Batch
Order visibility pre-settlement
None
None
None
Uniform clearing price
✓
✓
✓
MEV / front-running
$0
$0
$0
Regulatory approval
DeFi carve-out
NYSE / SEC
AMF / ESMA
Compliance contact
compliance@lattice.xyz
Download JSON ↗Download .md ↗

This disclosure is for informational and regulatory review purposes. It does not constitute legal advice. Lattice is experimental software on Solana devnet. Obtain qualified legal counsel before any mainnet deployment.

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