As artificial intelligence continues to transform financial markets, a key challenge remains unsolved: how do we trust AI-driven trading without revealing the strategy behind it?

Knidos, an on-chain AI fund manager, is tackling this head-on through a new cryptographic primitive called zk trade proofs, enabling the verification of trading activity without exposing private trade data or algorithms.

Born from zkVerify’s growing ecosystem of proof-based innovation, Knidos has become the first protocol to anchor this concept on a purpose-built verification layer, bringing privacy, transparency and cryptographic assurance to AI trading.

What Are zk Trade Proofs and Why Do They Matter?

ZK trade proofs are a breakthrough in verifiable AI trading, allowing fund managers and protocols to prove that trades occurred within specific parameters, such as time, venue, and profit range, without revealing the underlying trades themselves.

Using Aztec’s Noir circuits for proof construction, each batch of trading activity is encoded into a zero-knowledge proof that attests to compliance with the fund’s declared trading rules. These proofs confirm that:

The result is a privacy-preserving framework that protects intellectual property while assuring users that trading claims are genuine, eliminating the risk of simulation or Ponzi-like behavior.

For investors and users, this means you no longer have to “trust” an AI fund’s performance, you can verify it cryptographically.

How zkVerify Powers On-Chain Validation for AI Trading

To scale zk trade proofs across diverse trading environments, Knidos integrates directly with zkVerify, a modular blockchain optimized for proof verification.

zkVerify enables Knidos to submit, validate, and record zk trade proofs on-chain, ensuring that every verification is efficient, auditable, and final. This collaboration brings several key advantages:

Together, Knidos and zkVerify are bridging AI, trading, and cryptography, proving that verifiable finance isn’t just a concept, but a working system.

The Knidos Architecture: Privacy Without Compromise

Knidos’ AI operates autonomously across decentralized and centralized exchanges, executing trades based on real-time market data, sentiment signals, and volatility patterns. But rather than exposing this activity, it packages trading logs into private commitments that feed into zk trade proofs.

Each proof generation cycle validates that:

By anchoring verification on zkVerify, Knidos ensures these attestations are publicly verifiable yet completely private, a trustless validation mechanism for black-box trading systems.

Why This Partnership Matters

This collaboration marks a milestone for both teams:

Through this partnership, the two projects are building the foundation for a new class of financial primitives where every claim is proven, not promised.

The Road Ahead: Verifiable Finance and the Future of Proof-Based AI

Knidos’ successful mock zk trade proof transaction on zkVerify marks just the beginning. With ongoing collaboration through zkVerify’s grant program and upcoming mainnet deployment, both teams are refining the proof lifecycle, from batch generation to recursive aggregation, to make large-scale, real-time verification possible.

In the long run, zk trade proofs could reshape DeFi and fund management:

The Knidos–zkVerify partnership demonstrates a powerful idea: in the age of AI-driven markets, trust is no longer an assumption, it’s a proof.

Learn more about Knidos: www.knidos.xyz

Discover zkVerify: www.zkverify.io