The Quarantine transaction feature in Vaults lets organisations actively manage and reduce the risk of unsafe digital asset transfers. Users can temporarily isolate suspicious or high-risk transactions in hot and warm wallets, review and evaluate them, and then decide whether to approve the transfer. This approach ensures compliance with platform and internal security policies while protecting wallet integrity and minimizing potential losses.

Liminal Vaults ensures Owners and Compliance team can maintain compliance via quarantine transaction management by:

1. Navigate to Compliance > Quarantine to manage all quarantined transactions.
2. Navigate to Compliance > Others to generate a compliance report and manage the compliance team. Refer to the Compliance page to learn more.

How quarantine secures potentially risky transactions

Quarantine transaction management strengthens security by flagging, isolating, and reviewing potentially risky transactions before they impact wallet operations, platform, and infrastructure security This structured process ensures that suspicious activities are contained, evaluated by the compliance team, and only reintegrated when verified as safe, i.e., safeguarding asset security and maintaining platform integrity.

• Ensures secure quarantined transactions: Potentially unsafe transactions are flagged and held in a secure state, minimizing theft and preserving asset security and integrity.
• Compliance-driven regulation: The compliance team plays a key role in reviewing and unquarantining quarantined transactions. They assess risk, verify legitimacy, and ensure adherence to regulatory and internal security standards.
• Identifies, isolates, and reintegrates safely: High-risk transactions are identified and isolated for compliance, then seamlessly reintegrated into normal workflows once an unquarantined transaction is approved.
• Transactions are reviewed by Firewall: Transactions are reviewed by the Firewall team in the Firewall review stage. Here, any transaction deemed risky or unwarranted is moved to the Quarantined section.

Quarantine Transaction Management

Owners and Compliance team members can manage quarantined transactions.

You can perform the following actions:

1. Quarantine and Unquarantine a transaction:
   1. An incoming (Receive) transaction can be quarantined by the Owner and Firewall team member. Navigate to Home > Pending Actions .
   2. Unquarantine a quarantined transaction as a Compliance team member. Navigate to Compliance > Quarantine section.
2. Add and manage the Compliance team.

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Note

• A transaction that fails Travel Rule protocol and shows either a cancelled, declined, or rejected status is quarantined by default. Check out the Travel Rule guide to implement and manage Travel Rule policy.
• Transaction management does not apply to multisig cold and hardware wallets.

Navigating Quarantine

Navigate to Compliance > Quarantine from your Liminal Vaults account.

The Quarantine page provides an overview of the total quarantined balance across all transactions. The total quarantined balance across all transactions is displayed in the page header.

Overview: The section lists all quarantined transactions in your organization’s account. Each transaction entry shows key information explained in the table below:

Actions

You can perform the following actions:

1. Search and Filter functions:

   1. Use the search box to quickly locate specific transactions.
   2. Filters allow you to refine results by date range and status, including Pending, Approved, Quarantined, and Unquarantined, helping compliance teams and wallet owners focus on the transactions that require immediate attention.

2. Transaction history panel: ​​ Click View on the desired wallet to open its side panel to view a wallet’s transaction history,.

   The information displayed depends on the transaction’s status:

   1. Pending and Approved Transactions: Shows only the Details panel, which includes basic transaction information such as wallet, amount, transaction hash, and associated members.
   2. Quarantined and Unquarantined Transactions: Include both Details and Timeline panels.
      1. Details Panel: Displays comprehensive transaction information, firewall policies in place, compliance data (risk score, travel rule status, category), and involved members.
      2. Timeline Panel: Captures the full quarantine history, including who performed each action, the date and time (e.g., 06 Oct 25, 13:59 IST), and the originating IP address. Example of a Quarantined transaction panel:

Refer to the Transactions guide to check the transaction history.

Prerequisites

• You are an Owner or a wallet member.
• You must enable the Liminal Firewall for wallet.
• In Firewall, you must have either of the following policies enabled for incoming (Receive) transactions:
  • Travel rule with an automatic credential to support travel rule status, or
  • Transaction risk (AML) with the required TRM labs credentials to return a risk score.

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Note

• The Transfer policy is only supported for Send transactions and cannot be applied to Receive transactions for quarantine purposes.
• You should set receive rules on the travel rule policy. If the travel rule policy is cancelled, declined, or rejected, the transaction will be automatically quarantined.

Quarantine a transaction

Any Receive transaction with a Pending status and Firewall Approval Required substatus can be quarantined by the Firewall team members instead of approving it. Refer to the Set up Liminal Firewall guide to add Firewall team to your account.

Follow the steps below to quarantine a transaction you have received.

1. Navigate to the Home page and the Pending Actions section.
2. Click View next to the respective pending transaction to bring up the transaction details panel.
3. Click Quarantine to isolate the transaction.
4. Enter the message, i.e., reason for quarantining the transaction, and click Proceed. Alternatively, click Cancel to cancel the action.
5. Enter the 2FA code to confirm the quarantine action. You will receive an email confirmation. The quarantined transaction moves to the quarantined transactions' list.

The quarantined transaction is moved to the Compliance section and can be managed by the Owner and Compliance team members only.

Unquarantine a quarantined transaction

Owners and Compliance team members can unquarantine a transaction that is safe to reintroduce to the system. You can reintegrate a quarantined transaction into the wallet transaction flow when it is deemed secure.

1. Navigate to the Compliance page. It opens in the Quarantine tab by default.
2. Select the transaction from the list of quarantined transactions and click View to open its transaction details panel.
3. Click Unquarantine to unquarantine the quarantined transaction.
4. Enter the reason for unquarantining the transaction and click Proceed.
5. Enter the required 2FA authentication code.

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Owners can unquarantine without minimum quorum approval.

The transaction is successfully unquarantined. You will receive an email notification confirming the same.

• It is moved to the Pending Actions section of your Liminal Vaults homepage. You can approve the Receive transaction or quarantine it again.
• The transaction history panel is updated accordingly for the required transaction.