Input Privacy

Input Privacy refers to the guarantee that the specific data provided by a participant in a computation remains hidden from other parties. In the context of derivatives, this means that an individual's order size, price limit, or collateral amount is not visible to the counterparty or the network.

Maintaining input privacy is critical for preventing front-running and other forms of market manipulation. It requires the use of advanced cryptographic primitives like secret sharing or secure hardware enclaves to protect the data during the computation process.

Achieving this ensures that the integrity of the market is maintained without compromising the anonymity of the participants. It is a key requirement for institutional adoption of decentralized financial instruments.