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Update wallet-stake-permission.mdx
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src/content/docs/explanations/system/wallet-stake-permission.mdx

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This version is based on the Torus v0.69 and is expected to change with the Torus v1.
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</Aside>
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The Wallet scope enables cold-hot wallet behavior, where high-value accounts can delegate specific
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operations to more accessible accounts without exposing private keys.
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This significantly improves security by allowing cold storage accounts to remain offline while still participating in network staking activities.
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The Wallet Permission Scope will enable granular delegation of all wallet operations through the Torus Permission System. Currently, only Stake operations are implemented as low-hanging fruit for wallet security improvements.
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### Core Functions
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The Wallet Stake Permission enables cold-hot wallet behavior, where high-value secured keys can delegate stake operations to less secure keys utilized only for active protocol participation.
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* **Cold-Hot Wallet Architecture:** High-value accounts can delegate operational permissions while keeping primary keys in cold storage, eliminating the security-convenience tradeoff.
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* **Granular Operation Control:** Specific wallet operations can be delegated independently, allowing precise control over what delegated accounts can perform.
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* **Non-Transferable Delegation:** Delegated operations cannot access or transfer the principal funds, maintaining asset security even if hot wallets are compromised.
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This feature also enables to create a highly secure offline cold-key that never interacts with any webapp and delegate Stake Permission as exclusive (delegator loses permission) & irrevocable to the new key. If your main key gets compromised the tokens cannot be unstaked and hence not transferred. However, an attacker could attempt to immediately transfer as soon as you choose to unstake. But as long as staked, tokens are untouchable.
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#### Rules
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It's not a perfect security feature and as standard practice it will eventually be replaced by Transfer Permissions, but it is a meaningful improvement and we recommend high-value keys to apply it.
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* **Operation Scoping:** Each delegation specifies exactly which wallet operations are permitted, preventing scope creep.
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* **Principal Protection:** Delegated accounts cannot perform operations that would reduce the principal balance or transfer core assets.
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* **Revocation Terms:** Can be configured as revocable or irrevocable.
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* **Constraint Inheritance:** Security constraints from the cold wallet apply to all delegated operations, ensuring consistent security policies.
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* **Time-bound Delegation:** Delegations can include expiration times for automatic security cleanup.
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#### Active Delegation Behavior
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When a wallet permission delegation is active, the delegator can choose the level of operational control:
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* **Optional Exclusive Access:** The delegator can choose whether to retain direct control alongside the recipient through the exclusive access parameter
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* **Recipient Authority:** The designated recipient can perform the specific wallet operations covered by the permission
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* **Asset Constraints:** All operations are constrained to existing assets, meaning no new staking from available balance
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### Core Functions of Stake Permission
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* **Exclusive Delegation** The delegator key loses the wallet permission.
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* **Improved Key Security:** Enables cold-hotkey behavior.
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### Related Concepts
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<Aside type="tip" title="Ready to Set Up Wallet Delegation?">
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Follow our [step-by-step guide to create wallet stake permissions](https://docs.torus.network/how-to-guides/system/create-wallet-stake-permission/) for practical implementation instructions.
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</Aside>
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</Aside>

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