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Frequently Asked Questions

What is a stealth address?

An Ethereum address that only the recipient can recognize and control, generated using the recipient's public keys. Each payment uses a unique stealth address, making it difficult for onchain observers to link multiple payments to the same recipient. Learn more.

What is ENS?

A decentralized naming system that maps human-readable names (like username.eth) to Ethereum addresses and other resources. Cloaked uses ENS as a public entry point for generating stealth addresses. Learn more.

What is the PIN?

A 4-digit PIN you create during registration. It is used locally to derive your stealth address capabilities and to authorize sensitive actions like sending funds.

The PIN is combined with your wallet address to construct a Cloaked-specific message that your wallet signs. That signature is then used to derive your viewing and spending capabilities. You will be prompted for your PIN whenever an action requires authorization.

The PIN never leaves your device and is never stored by Cloaked.

The primary purpose of the PIN is to interrupt mindless signing by requiring an explicit confirmation step for sensitive actions. Being prompted to enter your PIN is a signal that you are authorizing a sensitive Cloaked action. This makes accidental or blind signing much less likely and helps protect against phishing attempts that rely on tricking users into signing messages without understanding why.

Important: Cloaked does not store your PIN. Make sure to store your PIN securely.

Does Cloaked custody my funds?

No. Cloaked never custodies your funds or private keys. Your funds remain fully under your control and are held onchain at addresses derived from your wallet. Only you can authorize and sign transactions. Cloaked provides coordination services (address derivation, balance tracking, and transaction construction) but cannot move funds independently.

What happens if Cloaked goes offline?

Your funds remain safe and accessible onchain. Since Cloaked does not custody funds, your stealth addresses and their balances are unaffected by service downtime. However, while offline, you won't be able to:

  • View your aggregated balance through Cloaked
  • Generate new stealth addresses through Cloaked's service
  • Construct and send transactions through Cloaked

Cloaked offers users a way to circumvent our service by using the open-source Cloaked SDK. From this SDK, users can rederive spending capabilities and stealth addresses.

Cloaked is designed to pass the “walkaway test”: the system should continue to work even if the service becomes unavailable or the original developers disappear. This reflects a commitment to decentralization and user financial sovereignty.

“We’re building decentralized applications. Applications that run without fraud, censorship or third-party interference. Applications that pass the walkaway test: they keep running even if the original developers disappear.” - Vitalik

Please note that transactions sent from stealth addresses outside of the Cloaked system may cause degraded behavior in Cloaked clients.