> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/introduction/why-use-covenant/2rst-93covenant-structural-advantages.md).

# 2rst\*93Covenant structural advantages

Covenant system incorporates self-custody, deterministic operations, on-chain verifiability and distributed programmability at its core basis. These principles ensure Covenant system' users maintain full verifiable control over their keys and assets.

#### The user always holds the keys

Covenant is a distributed system that operates fully algorithmically and on-chain, without ever need of the user' keys.

#### No central authority

Covenant is a fully distributed system. No single entity, centralized authority or federated group has the power to interrupt Covenant system operations or make centralized decisions. 

#### Non-custodial, no access to user funds

Covenant system is a non-custodial system that works without centralized custody and doesn't require access to user' funds.

#### On-chain verifiable statefulness

All Covenant operations, including cross-chain, are on-chain stateful. Each state change, transaction, signature, channel and deposit, cross-chain transfer on Covenant system are recorded on-chain and publicly available to everyone.

#### No (middle)man — full automation

Covenant system is based on smart contract logic and provides verification automatically, deterministic and fully on-chain. No challenge periods, no permissions or gatekeepers are required for operations using Covenant system.

#### Quick permissionless operations

Due to verifiable statefulness and distributed design of the Covenant system, all the operations, including depositing and withdrawals, are:

* fully automated
* without middleman
* on-chain verifiable
* deterministic, and 
* fast (under 1 minute for verification & processing on Covenant).  

#### No wrapping, no bridging

Covenant system uses fully on-chain agnostic stateful channels instead of imperfect concepts such as wrap mechanics or centralized bridging.

#### Increased on-chain security

All Covenant system processes are distributed . Message / transaction processing is programmed and smart contract-managed on-chain, utilizes onion-style routing and is secured cryptographically. 

#### Deterministic transparent fee structure

All Covenant system fees and commissions are openly encoded on-chain in smart contracts with deterministic fee and rewards economics, without any discretionary charges.

#### Transparently verifiable 100% proof of reserves

Covenant system operates fully on-chain, with deposit stateful channeling that naturally provides 100% proof of reserves.

#### Open participation

Covenant system is designed distributed and open, so anyone can participate in securing the Covenant system or take part in its governance. 

#### Auditability without user' data transparency

On-chain auditability doesn't mean sensitive data transparency. Covenant system provides optional integrations with KYC / AML providers and ZKP[^1] functionality.

[^1]: Zero-Knowledge Proof