Non-Custodial Architecture

SnipeRoute never holds funds or assets.

Overview

SnipeRoute is non-custodial infrastructure. Funds and assets never pass through SnipeRoute — they remain exclusively with the user's connected broker account.

How It Works

What SnipeRoute Has Access To

Broker OAuth Flow

Step 1: User Initiates OAuth

User → SnipeRoute Dashboard → "Connect Alpaca Account"

Step 2: Redirect to Broker

SnipeRoute → Alpaca OAuth → User Authorizes

Step 3: SnipeRoute Receives Token

Alpaca → SnipeRoute (OAuth token with trading scope)

Step 4: Token Stored Securely

SnipeRoute → Encrypted Database (token stored, never exposed)

Step 5: Trade Intent Uses Token

Upstream Platform → SnipeRoute → Alpaca API (using OAuth token)

Security Model

What SnipeRoute Stores

• OAuth access tokens (encrypted)
• OAuth refresh tokens (encrypted)
• Broker account IDs
• Order history metadata

What SnipeRoute Does NOT Store

• Passwords
• Bank account details
• Social Security Numbers
• Withdrawal permissions

Token Revocation

Users can revoke SnipeRoute's access at any time:

1. Via SnipeRoute Dashboard: Disconnect broker account
2. Via Broker Settings: Revoke OAuth token directly

Once revoked, SnipeRoute can no longer place orders.

Comparison: Custodial vs Non-Custodial

Custodial System (NOT SnipeRoute)

With a custodial system:

• You deposit funds into the platform's account
• Platform holds your assets
• Platform controls withdrawals
• Platform may lend or rehypothecate your assets

Risk: If the platform is hacked or goes bankrupt, your funds may be at risk.

Non-Custodial System (SnipeRoute)

With SnipeRoute:

• You keep funds in your own broker account
• SnipeRoute only has trading permissions
• You control deposits and withdrawals directly with your broker
• Your assets cannot be rehypothecated by SnipeRoute

Risk: If SnipeRoute is compromised, an attacker could place unauthorized trades, but cannot withdraw your funds.

Regulatory Implications

Example: Non-Custodial Flow

1. User Links Alpaca Account

# User visits SnipeRoute Dashboard
https://app.sniperoute.io/settings/brokers
 
# Clicks "Connect Alpaca"
# Redirected to Alpaca OAuth
# Authorizes "Trading" scope
 
# SnipeRoute receives OAuth token
# Token stored encrypted in database

2. Upstream Platform Submits Trade Intent

from sniperoute import SnipeRouteClient
from sniperoute.models import TradeIntentRequest, OrderSide, OrderType
from decimal import Decimal
 
client = SnipeRouteClient(api_key="sk_live_...")
 
intent = TradeIntentRequest(
    intent_id="trade_001",
    symbol="AAPL",
    side=OrderSide.BUY,
    quantity=Decimal("10"),
    order_type=OrderType.MARKET,
    broker_id="user_alpaca_connection"  # OAuth token used here
)
 
response = await client.create_intent(intent)

3. SnipeRoute Routes to Alpaca

# SnipeRoute sends API request to Alpaca
POST https://api.alpaca.markets/v2/orders
Authorization: Bearer {user_oauth_token}
 
{
  "symbol": "AAPL",
  "qty": 10,
  "side": "buy",
  "type": "market"
}

4. Order Fills in User's Alpaca Account

# Alpaca executes trade
# Shares credited to user's Alpaca account
# SnipeRoute receives status update (filled)
 
# User can verify in Alpaca dashboard:
# - 10 shares of AAPL purchased
# - Cash deducted from user's account
# - SnipeRoute never touched the funds

User Control

Revoking Access

Users can revoke SnipeRoute's access at any time:

After revocation, new Trade Intents will fail with:

{
  "detail": "Broker connection no longer authorized"
}

Next Steps