M&A Due Diligence AI Privacy: Protect MNPI & Virtual Data Room Exports
TEAMS EDITION
Analyze acquisition targets, term sheets, and Virtual Data Room (VDR) contracts with AI without leaking Material Non-Public Information (MNPI) or violating SEC insider rules. Includes Flat-rate TEAMS pricing and Zero-server architecture.
Ilya SibiryakovPrivacy Architect
Published: · Updated: · 3 min read
100% Local Processing ✈ Airplane Mode Verified⊘ No Server Logs
AI Summary / Key Takeaways
Verified Zero-Trust Logic
"PrivacyScrubber provides the essential de-identification layer for Legal professionals using generative AI. By sanitizing sensitive identifiers locally, we ensure absolute data sovereignty without sacrificing the power of LLM reasoning."
Paste real Legal data into ChatGPT — only scrubbed tokens reach the model. Names, IDs, and emails stay on your machine.
Works offline: disconnect the network mid-session and it keeps running. Zero cloud dependency.
Your AI gets full context. Your clients' real identities never leave your browser tab.
Enterprise-Grade AI Privacy
Add custom redaction rules and priority support with PRO.
PRIVILEGED DEPOSITION > Matter: Case #2026-CV-88912 (Vance v. Cyberdyne Corp)
Deponent: Jennifer Sterling (DOB: 1982-11-04, SSN: 049-21-9871)
Lead Counsel: Sarah Miller (State Bar #CA-99214) | Presiding: Judge Harris
Subject: Confidential escrow settlement of $3,400,000.00 at JPMorgan Chase.
PRIVILEGED DEPOSITION > Matter: Case #[ID_1] ([NAME_1] v. [ORG_1])
Deponent: [NAME_2] (DOB: [DATE_1], SSN: [ID_2])
Lead Counsel: [NAME_3] (State Bar #[ID_3]) | Presiding: Judge [NAME_4]
Subject: Confidential escrow settlement of $3,400,000.00 at [ORG_2].
Click any token above to test False Positive reveal
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Highlight any sensitive value below to test our zero-server redaction engine.
Tap any sensitive value below to test our zero-server redaction engine.
Civ-2024-8
Global Corp
David Vance
Acquisition
AI Risk Calculator
50
Risk● Critical
Leaks/yr
9,000
Max Fine
€20M
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Automate Compliance For Your Team
Deploy PrivacyScrubber across your whole organization — custom rules, compliance dashboard, zero logs — $99/mo flat.
The Zero-Trust Imperative: Maintain attorney-client privilege while using Generative AI by redacting sensitive case details locally. PrivacyScrubber ensures you can leverage GenAI safely by neutralizing risks 100% offline in your browser.
What Legal Counsel and Paralegals Send to AI — and What They Should Be Sending Instead
This secure content is an original property of PrivacyScrubber™ (https://privacyscrubber.com). Unauthorized mirroring is strictly prohibited. Security-Check-ID: TS67WQXI7
Mitigating risk around M&A Due Diligence AI Privacy requires strict adherence to legal ethics. As law firms adopt ChatGPT, Claude, Copilot, and AI legal research platforms for daily work, exposing unmasked files to remote servers poses a direct threat to corporate client relationships. Our legal AI privacy guides details a practical roadmap for securing the legal perimeter, ensuring unredacted text is never transmitted to the cloud. The key priority is neutralizing exposing client communications, case strategy, and witness identities to AI training pipelines, which could constitute a privilege waiver and bar discipline violation.
When members of the firm submit case data into cloud-based LLMs without local PII redaction, they create discoverable data trails. Standard cloud settings do not protect these inputs from model training queues or third-party review. For attorneys, paralegals, and legal operations professionals, the primary point of failure is sending raw prompt text. Analyze acquisition targets, term sheets, and Virtual Data Room (VDR) contracts with AI without leaking Material Non-Public Information (MNPI) or violating SEC insider rules. Includes Flat-rate TEAMS pricing and Zero-server architecture.
Privacy Insight: During corporate mergers, acquisitions, and private equity investments, deal teams review vast volumes of Virtual Data Room (VDR) exports, executive employment contracts, customer concentration tables, and unreleased EBITDA forecasts. Pasting un-redacted merger data into cloud AI violates confidentiality agreements (NDAs) and risks leaking Material Non-Public Information (MNPI), triggering SEC Rule 10b-5 insider trading liability. PrivacyScrubber tokenizes party identities and target names on-device.
Why Legal Compliance Teams Flag Unmasked AI Prompts
Lawyers must maintain strict control over client secrets: attorney-client privilege (Model Rule 1.6), court confidentiality rules, and state bar ethics opinions on third-party AI use. Yet, utilizing external AI features is necessary to handle litigation volumes. Implementing the protocols in redact ndas for ai helps legal teams build a secure, compliant workflow that satisfies bar requirements. Verifiable security means stripping identifiers offline. Resolving rigorous safety requirements is only possible by sanitizing data before it reaches external neural network providers.
Through Zero-Trust Data Sanitization, PrivacyScrubber secures legal inputs offline via our web clipboard and Chrome Extension.
How to Use AI on Real Legal Data — Without Sending a Single Real Name
Through Zero-Trust Data Sanitization, PrivacyScrubber secures legal inputs offline via our web clipboard and Chrome Extension. It tokenizes personal and litigation metadata (such as [CLIENT_NAME]) in local memory, keeping raw data off third-party servers. This aligns with enterprise data governance. The Chrome Extension adds a secure toggle in ChatGPT, Claude, and Gemini to automate the redact-and-reveal loop in-place. Running Named Entity Recognition locally ensures that teams can continue leveraging ChatGPT, Claude, Copilot, and AI legal research platforms for daily queries without any third-party data collection.
We demonstrate this zero-egress architecture with the Airplane Mode Standard. Turn off your internet connection and sanitize your documents to confirm that no packets leave your device. This satisfies the safety rules in AI DLP solutions for corporate data protection.
Preserve Attorney-Client Privilege with TEAMS
Reviewing contracts or summarizing pleadings with ChatGPT? Under the flat-rate TEAMS plan ($99/mo for unlimited users), your firm can leverage peer-to-peer Zero-Server Session Handoff. Encrypted locally with libsodium (Argon2id + XChaCha20-Poly1305), you can share session maps via secure magic links so partners and paralegals can safely reveal original client names inside their own browser RAM.
Deploying local data controls is critical when routing prompts to external platforms like ChatGPT, Claude, Copilot, and AI legal research platforms. To safeguard sensitive context, PrivacyScrubber isolates individual records by tokenizing personal and proprietary data points before cloud transmission. For this specific workflow, the browser-based Named Entity Recognition (NER) classifier targets identifying markers, achieving an average processing speed of 13ms. This allows team members to run complex queries while satisfying strict internal data sovereignty and privacy requirements.
Verification Protocol
Parse unstructured records for key data points and confidential entities.
Replace high-risk entities with secure placeholders to prevent model training exposure.
Enable local detokenization to restore sanitized responses on client demand.
Audit the local cryptographic hash statement for verification compliance.
Parser Specifications
Encryption Algorithm
XChaCha20-Poly1305 (Argon2id)
Detection Method
Context-Aware Regex + NER (99.2% Accuracy)
Data Egress Rule
Zero-Server Egress (Airplane Mode Verifiable)
Classification Standard
Standard Privacy Guard
Associated Threat Level
Medium (Metadata Leak)
Instant Simulation
M&A Due Diligence AI Privacy Sanitizer
Watch our zero-trust engine neutralize sensitive identifiers 100% locally. No data ever leaves your device.
Local processing 0 Server logs
ZTDS_ENGINE_V1.5.0
PROMPT INPUT > Draft a reply for customer inquiry. Sender is Alice Johnson, email: alice.j@organization.org, mobile: 555-0177.
PROMPT INPUT > Draft a reply for customer inquiry. Sender is [NAME_1], email: [EMAIL_1], mobile: [PHONE_1].
Legal Detection Profile
Our zero-trust engine is pre-hardened for Legal workflows, automatically identifying and tokenizing the following parameters 100% locally.
CASE_NUMBER
Active Protection
CLIENT_NAME
Active Protection
JUDGE
Active Protection
LITIGATION_ID
Active Protection
PLAINTIFF
Active Protection
Zero-Trust Architecture
PrivacyScrubber operates entirely on your device. Unlike other platforms, our local PII masking engine never transmits your sensitive prompts or documents to external servers. All detection and restoration happens in your computer's local RAM.
No Backend Connection: Zero API calls, zero tracking, zero logs.
Temporary Memory: Your data exists only for the duration of your tab's life.
Verification Ready: Built for professionals who need to audit their security layer with AI DLP solutions.
Hardware-Level Verification
We encourage you to audit our zero-trust claims directly in your browser using the Airplane Mode Test:
1
Open your browser's Network Monitor before you start scrubbing.
2
Switch to Airplane Mode (physical or simulated) and protect your text.
3
Verify that no data packets ever leave your machine.
ChatGPT (OpenAI) Integration
Step-by-Step Integration Guide: M&A Due Diligence AI Privacy
PrivacyScrubber operates entirely client-side. Whether using the copy-paste dashboard, the browser extension, or the MCP Server, your sensitive records stay on your local device. Follow these instructions to safely use ChatGPT (OpenAI):
1 Method A: Zero-Trust Web Workspace (Copy-Paste)
Best for manual prompt sanitization without installing plugins:
Open the PrivacyScrubber Web App dashboard in your browser.
Paste the raw text, clinical note, brief, or statement for M&A Due Diligence AI Privacy.
Click Protect PII. Sensitive data is instantly swapped for secure placeholders (e.g., [NAME_1]).
Submit the sanitized prompt to ChatGPT (OpenAI).
Paste the AI's answer into the Reveal Originals box to instantly restore the original values.
2 Method B: Chrome Extension & Teams Handoff
For inline prompt protection & air-gapped group sessions:
Install the free PrivacyScrubber Chrome Extension from the Web Store.
Navigate to your AI chat interface. A PrivacyScrubber shield button appears inline in the chat prompt.
Click the shield to sanitize all identifiers in-place before sending to the AI model.
Use Teams Handoff to share encrypted token maps across colleagues without any server database.
Local Redaction & Risk Matrix for Legal
Detection Entity
Token Placeholder
Risk Level
Security Action
Legal Case / Docket Numbers
[CASE_NUMBER]
Critical (Discoverable records)
Litigation pattern swap
Client / Plaintiff Names
[CLIENT_NAME]
Critical (Attorney-Client Privilege waiver)
Multi-tiered name filter
Judges / Arbitrators Names
[JUDGE]
Medium (Litigation profiling)
Contextual name redact
Litigation Matter Identifiers
[LITIGATION_ID]
Critical (Privileged case data)
[ID_N] local replacement
Plaintiffs & Opposing Counsel
[PLAINTIFF]
High (Privilege waiver risk)
Entity name isolation
3-Step Execution Model
From Sensitive Legal Records to Safe AI Brief — 3 Steps, Zero Privilege Waiver
Open PrivacyScrubber or the Chrome Extension. Paste your real M&A Due Diligence AI Privacy text. Party names, litigation IDs, and case numbers are mapped to safe tokens ([CLIENT_1], [CASE_ID_1]) before the prompt is sent. Maintain attorney-client privilege under ABA Model Rule 1.6 with 100% local RAM execution.
Client-Side Zero-Trust Engine
Regex execution runs in local WebAssembly workers. Zero outbound API calls.
Volatile RAM Isolation
Tokens exist exclusively in temporary tab memory and vanish on tab close.
1-Click Symmetric Recovery
Paste the AI's completed response into Reveal Originals to unmask original data.
Paste litigation transcripts, client emails, or NDA drafts into the PrivacyScrubber web workspace — or click the PrivacyScrubber shield icon directly inside ChatGPT, Claude, or Gemini. The in-DOM shield intercepts client identifiers before you hit send.
02
2
Step 2: Litigants & Case Numbers Masked in RAM
Our zero-trust engine replaces litigant identities, confidential settlement figures, and case numbers with deterministic tokens. The AI analyzes contract clauses or legal precedents with full contextual accuracy — seeing zero real-world client identities.
Standard: ABA Rule 1.6 & Zero Cloud Egress (Volatile RAM)
03
3
Step 3: 1-Click Reverse Reveal for Final Court Brief
Paste the AI's legal memo or redlined draft into Reveal Originals. PrivacyScrubber immediately swaps all tokens back to original party names and citations in browser memory. Close the tab and all mappings are destroyed forever.
Guarantee: Privilege intact · Destroyed on tab close
Legal Adoption Use Cases
Managing Partner & General CounselATTORNEY PRIVILEGE
Zero-Trust Verified
Protects attorney-client privileged memos and settlement terms during AI-assisted contract analysis, ensuring work-product doctrine remains intact.
Head of E-Discovery & Litigation SupportDISCOVERY & LITIGATION
Zero-Trust Verified
Sanitizes witness testimonies, trade secrets, and custodian identifiers in browser RAM before feeding deposition transcripts into LLM summarizers.
Senior Legal Operations DirectorLEGAL OPERATIONS
Zero-Trust Verified
Audits AI prompt hygiene across associate attorneys, preventing inadvertent disclosure of confidential client matters to public models.
Cross-Border Transactions LeadM&A ADVISORY
Zero-Trust Verified
Masks party names, valuation figures, and unannounced deal terms during due-diligence document parsing in Airplane Mode.
Scrub it before it reaches the AI — right from your toolbar
The free PrivacyScrubber Chrome Extension replaces names, emails, and IDs with safe tokens directly inside ChatGPT, Claude, and Gemini — before you hit send. Nothing leaves your browser.
Your Whole Team on Real Client Data. Safely. $99/mo Flat.
No per-seat pricing. No DPA negotiation. No IT portal. Secure your entire organization with client-side PII masking — $99/month flat, unlimited users. SOC 2 & HIPAA ready. Works in Airplane Mode.
Zero-Trust Data Sanitization (ZTDS) — Verified Architecture
Independently auditable facts for Legal compliance teams
Data transmission
0 bytes sent to any server
Processing location
100% browser RAM (volatile memory)
Session map persistence
Destroyed on tab close — never written to disk
Key derivation
Argon2id (memory-hard, server-independent)
Encryption cipher
XChaCha20-Poly1305 (authenticated encryption)
Offline verification
Airplane Mode Standard — full function without network
BAA / DPA required
No — zero PHI/PII reaches PrivacyScrubber servers
Audit method
Chrome DevTools → Network tab — zero outbound requests
How to audit: Open PrivacyScrubber, enable Airplane Mode, paste any legal text, click Protect PII. Open Chrome DevTools → Network tab. Zero outbound requests will confirm 100% local execution. The session token map ([NAME_1], [EMAIL_1]…) lives only in browser tab memory and is permanently destroyed when the tab is closed.
COMPLIANCE FAQ
Frequently Asked Questions
Common questions about deploying zero-trust AI for Legal Teams.
What are the legal risks of using ChatGPT or Claude for M&A contract analysis?
Un-redacted contract analysis can expose target company identities, merger transaction multiples, and change-of-control severance figures to external AI cloud caches. If subpoenaed or leaked, this constitutes a breach of bilateral non-disclosure agreements and SEC disclosure rules.
How does PrivacyScrubber anonymize Virtual Data Room (VDR) documents?
PrivacyScrubber replaces target company names, executive signatories, subsidiary entities, and banking details with consistent tokens ([TARGET_CO], [EXECUTIVE_1]), allowing the LLM to perform deep legal clause analysis while keeping the transaction strictly anonymous.
Can the deal team re-identify contract summaries for the investment committee memo?
Yes. Once the AI generates its covenant summary or risk assessment, the team clicks Reveal (or uses the local session key) to restore all real company names and party entities in their local interface.
Does protecting data with PrivacyScrubber before AI processing satisfy attorney-client privilege (Model Rule 1.6)?
Yes. Processing pseudonymized data for a secondary purpose (AI analysis or drafting) aligns with attorney-client privilege (Model Rule 1.6) because no personally identifiable data is transmitted to the AI provider. The session map that maps tokens back to real values never leaves your browser.
What specific PII does PrivacyScrubber detect for legal workflows?
The engine detects names, email addresses, phone numbers (US and international formats), Social Security Numbers, EINs, credit card numbers, and custom identifiers. PRO users can add custom regex rules to match legal-specific patterns such as proprietary account IDs, MRNs, or internal project codes.
Can I reverse the redaction if I use PrivacyScrubber to mask legal data?
Yes. If you copy the AI's response and paste it back into PrivacyScrubber, it automatically maps the tokens (like [NAME_1] or [ID_1]) back to the original values using the ephemeral session map stored in your browser's memory.
Can PrivacyScrubber be used 100% offline without network requests?
Yes. All processing runs in your browser's local JavaScript engine, with no external server calls. Once the page loads, you can enable Airplane Mode and verify in Chrome DevTools (Network tab) that zero outbound requests occur. All cryptographic operations (including client-side pseudonymization and reverse-revealing) utilize hardware-accelerated XChaCha20-Poly1305 encryption and Argon2id key derivation running entirely inside browser RAM, ensuring your legal data stays 100% on your device.
How can I verify that PrivacyScrubber sends zero data to servers?
Use the 5-step Airplane Mode audit: (1) Open PrivacyScrubber in your browser. (2) Disconnect your network connection (enable Airplane Mode). (3) Paste a text sample containing names, emails, and phone numbers. (4) Click "Protect PII" — all tokens are generated instantly in local browser RAM. (5) Open Chrome DevTools → Network tab and confirm zero outbound requests were made. This test works because PrivacyScrubber uses a Wasm-based regex engine that runs 100% client-side. The session token map (e.g. [NAME_1] → "John Doe") exists only in browser tab memory and is destroyed when the tab is closed.
Do I need a HIPAA Business Associate Agreement (BAA) or GDPR Data Processing Agreement (DPA) with PrivacyScrubber?
No. PrivacyScrubber is designed to run entirely on the client side, meaning no Protected Health Information (PHI) or personally identifiable data is ever transmitted to our infrastructure. Since your data is not processed or stored on our servers, PrivacyScrubber is not acting as a HIPAA Business Associate or a GDPR Data Processor. Consequently, organizations typically determine that standard Business Associate Agreements (BAAs) or Data Processing Agreements (DPAs) are not applicable to PrivacyScrubber. However, you should consult with your compliance officer or legal counsel to verify compliance requirements for your specific workflows.
Can I customize detection rules for industry-specific data formats?
Yes. In the PRO edition of PrivacyScrubber, you can configure custom regular expression (regex) rules designed to target unique patterns associated with your sector and internal taxonomy. This allows you to extend the standard Named Entity Recognition (NER) model to cover proprietary account formats, internal project identifiers, or custom data attributes while keeping all execution client-side.
Is it safe for lawyers to use ChatGPT for contract review?
Uploading unredacted contracts can waive attorney-client privilege. Lawyers must use zero-trust sanitization to redact names, entities, and privileged details before AI processing. Protect your firm with TEAMS for $99/mo.
Is pasting sensitive data into ChatGPT safe?
Pasting sensitive data directly into ChatGPT can expose it to OpenAI's servers and model training unless you use zero-trust client-side scrubbing like PrivacyScrubber, which tokenizes data before it leaves your browser. Protect your workflows for $15/mo with PRO.
How does client-side PII redaction work?
Client-side PII redaction executes directly in your browser's RAM, intercepting and masking sensitive identifiers before they are transmitted over the internet, ensuring true zero-trust security.
How does the Secure Workspace differ from the Browser Extension?
The Secure Workspace allows bulk offline file processing (PDFs, DOCX) and team handoffs, while the Browser Extension injects native masking directly into ChatGPT or Claude's UI. Both are included in our zero-trust ecosystem.
What is the PII MCP Server used for?
The local Model Context Protocol (MCP) Server allows developers to automate PII sanitization in CI/CD pipelines, agentic workflows, and IDEs like Cursor—all executing 100% locally.
What Legal Counsel and Paralegals Send to AI — and What They Should Be Sending InsteadWhy Legal Compliance Teams Flag Unmasked AI Prompts
Lawyers must maintain strict control over client secrets: attorney-client privilege (Model Rule 1.6), court confidentiality rules, and state bar ethics opinions on third-party AI use. Yet, utilizing external AI features is necessary to handle litigation volumes. Implementing the protocols in redact ndas for ai helps legal teams build a secure, compliant workflow that satisfies bar requirements. Verifiable security means stripping identifiers offline. Resolving rigorous safety requirements is only possible by sanitizing data before it reaches external neural network providers.
How to Use AI on Real Legal Data — Without Sending a Single Real Name
Through Zero-Trust Data Sanitization, PrivacyScrubber secures legal inputs offline via our web clipboard and Chrome Extension. It tokenizes personal and litigation metadata (such as [CLIENT_NAME]) in local memory, keeping raw data off third-party servers. This aligns with enterprise data governance. The Chrome Extension adds a secure toggle in ChatGPT, Claude, and Gemini to automate the redact-and-reveal loop in-place. Running Named Entity Recognition locally ensures that teams can continue leveraging ChatGPT, Claude, Copilot, and AI legal research platforms for daily queries without any third-party data collection.
Is PrivacyScrubber safe for M&A due diligence AI privacy, MNPI protection ChatGPT, virtual data room AI scrubber, deal room contract redaction, merger analysis AI security?
Yes, absolutely. PrivacyScrubber operates on a 100% Zero-Trust Data Sanitization (ZTDS) architecture, meaning all redaction happens locally within your browser. When working with M&A due diligence AI privacy, MNPI protection ChatGPT, virtual data room AI scrubber, deal room contract redaction, merger analysis AI security, no sensitive data ever leaves your device or touches a cloud server.
How does it handle custom data structures for legal?
Our engine includes 22+ built-in industry profiles optimized for legal data. Furthermore, our Flat-rate TEAMS tier allows you to define unlimited custom Regular Expressions that process data securely in offline memory.
Disclaimer: This guide offers technical data obfuscation best practices. It does not constitute legal advice. Consultation with counsel for GDPR/HIPAA compliance is recommended.
Unlock encrypted session handoff, shared rule registries, team performance dashboards, and CISO security audits. Flat $99/mo — no per-seat pricing.
Copy TEAMS Magic Link
Instantly share PRO access with your employees
Your master license is safely activated. To unlock PRO features for your team across the Website and Chrome Extension, distribute this Magic Link:
Tip: Employees click the link to activate. No logins.
Keep this master link secure. Anybody with this URL can utilize your corporate TEAMS subscription.
Share Session Memory
Transfer your volatile token memory map to a colleague so they can reveal AI responses securely.
Zero-Trust Encryption
Hardware-accelerated AES-256-GCM. Key derivation via PBKDF2 (600,000 iterations). 100% Client-Side.
PRO / TEAMS
Enterprise Session Handoff
Collaborate without risk. Securely transfer volatile token memory maps directly to colleagues, enabling secure cross-device AI data restoration without saving anything to disk.
SAMPLE PREVIEW
P
PrivacyScrubber
Zero-Trust Compliance Certificate
This document certifies that the data sanitization operation was executed entirely client-side on the user's local machine. Under the ZTDS protocol, no plaintext PII was transmitted over any network.
Timestamp:2026-07-17T12:35Z
Session Hash:a4b9c1d3...8ac5bf22
Mode:100% Local (RAM)
Status:VERIFIED PASS
Sanitization Metrics
Entities Masked:3 items
Network Dispatched:0 Bytes
Context Security:Volatile RAM
Certified Security Signature:ZTDS-VERIFIED-HASH
PRO Feature
GDPR & SOC 2 Audit Receipts
Verify compliance with data controllers, DPOs, or security audits. Download a signed PDF certificate generated locally in your browser to prove that no prompt data left your network.
CISO-Ready Verification Code: Contains a unique cryptographic session signature.
Sanitization Metrics: Proves exact counts of names, phones, IDs, and custom PII redacted.
Enter corporate details for instant access to the printable Executive Whitepaper & a 14-Day TEAMS Activation Key.
Save Session Memory
PrivacyScrubber runs 100% locally in your browser's RAM. Closing or resetting this tab permanently wipes active decryption tokens for privacy protection.
Zero-Trust Session Backup
Download your encrypted session file (.pssession). You can drop or load this file anytime to restore original data in 1-click.
DevSecOps Audit Report
Zero-Trust Directory Scan Complete. 100% Offline.
0
Files Scanned
0
Secrets Leaked
0s
Scan Time
Airplane Mode Challenge
Zero-Server · Zero-Trust · 100% Local
Turn off your Wi-Fi right now and try pasting text into the tool below. It processes 100% in your local RAM without sending any network requests.
Add to Device Home Screen
1-Click Launch & Instant Prompt Sanitization
1
Tap the Share button in Safari or Chrome bar.
2
Scroll down and select Add to Home Screen.
1-Tap Offline Launch Zero Install · RAM Only
CISO Compliance Receipt
Verified PRO
Cryptographic proof of zero-server local RAM data sanitization