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Keep your ADA recovery phrase and unrestricted private keys out of AI agents, prompts, files, tool settings, and any computer the agent can access. Give an agent only the access its task needs, and review any transaction on a trusted signing device before approving it. A hardware wallet can keep keys off the connected computer, but it cannot stop you from approving a harmful transaction.

Why an AI agent should not hold your recovery phrase

ADA is recorded on the Cardano blockchain; a wallet manages the keys used to authorize actions rather than holding coins physically. A recovery phrase can regenerate the wallet’s key tree. Anyone who obtains it may be able to control the funds, so treat it as an unrestricted credential—not as information an agent needs to do its job. Cardano’s keys and wallets documentation describes how keys relate to wallet access and transactions, while its seed phrase glossary explains the phrase’s recovery role.

  • Never paste a recovery phrase or private key into an AI prompt, chatbot, agent memory, tool configuration, or code.
  • Do not save it in a synced document, screenshot, cloud note, or other file the agent or its host may access.
  • Do not give it to a website, purported support representative, or anyone claiming to help troubleshoot a wallet. Cardano says legitimate support staff will not ask for your recovery phrase. Cardano: Seed Phrase

What access an agent can have to a Cardano wallet

Agent capabilities depend on the framework and configuration; not every AI agent can interact with a wallet. But Cardano’s developer documentation describes agents that can use SDKs to hold keys, build transactions, sign them, and submit them. Treat an agent and every connected tool as privileged software, not as a secure place to store keys. Cardano Developer Portal: Keys & Wallets and AI agents on Cardano

Wallet connection and transaction approval are separate steps. A browser wallet interface can expose information such as addresses or unspent transaction outputs (UTXOs), then present a transaction for signature. A connection does not automatically mean every request is safe; inspect what the wallet is asking you to approve. Cardano Developer Portal: Connect a Wallet

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Also distinguish a message signature used for authentication from a transaction signature. Authentication may involve signing a nonce to prove control of an address; transaction signing authorizes an on-chain action. Read the wallet’s request and understand which one it is before approving it. Cardano Developer Portal: Authenticating users with their Cardano wallet

Choose a setup that keeps keys out of the agent’s reach

Setup Key access from the agent-connected host Human review Practical fit
Software wallet accessible to the agent Potentially exposed if the wallet or its signing credentials are available to the agent or host. Depends on the wallet and workflow; do not assume a separate approval step. Convenient, but risky for funds you cannot afford to lose if an agent can access signing capability.
Hardware-backed signing Private keys remain on the secure device rather than being exposed to the connected computer. Inspect transaction details on the device screen before approving. Useful when an agent drafts or relays transactions but should not control signing keys.
Offline or cold-key workflow The signing keys are kept offline rather than on the agent-connected host. A person must handle the separate signing process. Appropriate for primary or higher-value holdings when convenience is secondary.

These are operational distinctions, not a product ranking. Cardano’s wallet guidance recommends keeping keys on a secure hardware device and checking transaction details on that device; its wallet documentation also describes offline key storage. Cardano Developer Portal: Keys & Wallets · Cardano Docs: Types of wallets

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Set up an agent workflow with limited exposure

  1. Keep the primary wallet separate. For experimentation, use a separate wallet holding only funds appropriate to the task. This is a prudent way to limit the consequences of a mistake, not a specific allowance prescribed by Cardano.
  2. Give the agent the minimum access required. If the task only requires reading public information or drafting a transaction, do not provide signing keys or configure the agent to sign and submit autonomously.
  3. Keep local wallet APIs behind a trust boundary. A local API is not automatically safe merely because it runs on your computer. Cardano Foundation warns that trusted API access can expose sensitive information or permit wallet data to be deleted; spending also requires the wallet passphrase or secret key. Do not expose an API to an agent unless you understand its permissions and the consequences of that access. Cardano Foundation: Security – Cardano Wallet
  4. Review the proposed action before signing. Verify the recipient, amount, fees, and any script or contract action on the trusted device. Cardano’s developer checklist says: “Verify on-device: confirm transaction details on the hardware wallet screen, not just the app.” Cardano Developer Portal: Keys & Wallets
  5. Approve only what you understand. If the device shows an unexpected recipient, amount, fee, or action—or the request is unclear—reject it. A human approval step is useful only if you inspect the transaction details rather than confirm automatically.

What a hardware wallet does—and does not—protect

A hardware wallet isolates private keys from the connected computer, reducing the risk that malware or an agent on that computer can simply copy the keys. It does not make the agent’s proposed transaction trustworthy. If you approve a malicious or unintended transaction after reviewing—or failing to review—the device screen, the device can still sign it. Cardano Developer Portal: Keys & Wallets

Keep recovery material protected as well. Cardano’s glossary mentions paper and stamped metal as possible storage media; it does not certify any particular commercial backup product. A physical backup still needs protection from theft, loss, fire, and discovery. Cardano: Seed Phrase

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If a recovery phrase or key may have been exposed

Assume the wallet is compromised if its recovery phrase or unrestricted private key was entered into an agent, prompt, connected file, or untrusted service. Stop using that wallet for new funds and move assets to a newly created wallet whose recovery phrase was generated and stored outside the exposed environment. Do not enter the old phrase into another online tool to “check” whether it is safe. If you are uncertain whether a phrase was exposed, avoid sharing it further and use a trusted wallet process to secure the assets.

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