TechnicalWhitepaper

A Framework for Adversarial-Secure Deal Optimization using Secure Multi-Party Computation

Version 3.06 PagesTechnical Implementation

Built By Lawyers, For Lawyers

Glass Box AI. Your Knowledge. Your Control.
Privacy-first contract intelligence platform

HectoVault addresses the four barriers preventing lawyers from adopting AI

Confidentiality

Problem:

Commercial contracts contain pricing strategies, liability positions, and negotiation tactics that cannot be exposed to third parties. Cloud-based AI requires uploading sensitive documents to external servers.

HectoVault Solution:

Offline-first deployment. The platform runs entirely on customer infrastructure. Contract data is never transmitted externally. No training on customer documents.

Hallucinations

Problem:

Generic LLMs fabricate case citations, invent statutes, and present false information with confidence. A lawyer cannot cite a source that does not exist.

HectoVault Solution:

Glass box transparency. Every source verified against authoritative databases (EUR-Lex, Riigi Teataja, national court systems). Unverifiable claims explicitly flagged.

Data Protection

Problem:

Legal departments handle personal data subject to GDPR with audit requirements, breach notification obligations, and potential regulatory penalties.

HectoVault Solution:

ISO 27001 and GDPR compliance built in. Data processing agreements available. Audit logging for all operations. No subprocessors for contract data.

Professional Control

Problem:

AI systems that render verdicts undermine professional judgment. Lawyers need to evaluate options and consider client-specific factors.

HectoVault Solution:

Dialogue-driven interaction. The system asks clarifying questions, presents options with reasoning, and defers to professional judgment.

Core Platform Capabilities

Custom Playbook Engine

Define your review standards - liability caps, required clauses, escalation triggers. Enforce them consistently across all contracts.

  • Threshold rules
  • Required clauses
  • Escalation triggers
  • Context-aware analysis

Glass Box Transparency

Every claim linked to verified sources with step-by-step reasoning shown and explicit confidence levels for each assessment.

  • Source attribution
  • Reasoning chain
  • Verification status
  • [VERIFIED] markers

Secure Knowledge Base

RAG analysis using your internal documents - prior deals, templates, internal guidance, and negotiation history.

  • Prior deals
  • Templates
  • Internal guidance
  • OneDrive/SharePoint integration

Verified Legal Sources

Country-by-country authoritative database connections for legislation, case law, and public registries.

  • Estonia & EU live
  • DE, UK, US planned
  • Official gazettes
  • Court databases

Platform Overview

Enterprise-grade contract intelligence without compromise

100%
Offline Capable
3
Languages (EN, ET, ZH)
ISO 27001
Certified
0
Data Transmission

Target Users

In-House Legal Teams

Corporate counsel managing contract volume with limited headcount

Law Firms

Attorneys requiring AI assistance that meets professional standards

Business Users

SMBs and procurement teams with optional HectoVault-provided template libraries

Optional Modules

Multi-Party Computation (MPC)

Privacy-preserving deal optimization for consortium procurement, competitive bidding, and capacity sharing across competitors

Max 20 participants • BGW/GMW protocols • 100-1000x overhead • Minutes to hours latency

Equity Management

Cap table tracking for fundraising and M&A - ownership tracking, share classes, vesting schedules, option pools

Investor reporting • Dilution modeling • Integration with contract analysis for investment documents

Abstract

HectoVault is a glass box contract intelligence platform built by legal professionals who understand why lawyers hesitate to adopt AI. Unlike black box systems that obscure their reasoning, HectoVault shows every step of its analysis, every source it consults, and every rule it applies. The platform addresses four barriers to AI adoption in legal practice: confidentiality concerns through offline-first deployment with no external data transmission; hallucination risk through verified sourcing from authoritative legal databases; data protection through ISO 27001 and GDPR compliance; and loss of professional control through dialogue-driven interaction where AI offers options rather than making judgment calls.

1. Introduction: Why Lawyers Hesitate

Legal professionals understand the potential of AI-assisted contract review. Counterparties using these tools can identify unfavorable terms, benchmark against market standards, and generate optimized counteroffers faster than traditional review. The competitive pressure is real.

Yet adoption has stalled. This is not technophobia. Lawyers are trained to be cautious about tools they cannot verify, sources they cannot cite, and processes they cannot explain to clients. Generic AI contract tools fail on all three counts.

The Trustworthy Source Hierarchy

A fundamental insight drives HectoVault's architecture: AI systems that depend on undifferentiated 'internet search' cannot be trusted for legal work. HectoVault implements a strict source hierarchy:

  1. Customer Knowledge Base: Your templates, prior deals, internal guidance, approved positions
  2. Verified Legal Databases: Official gazettes, court databases, regulatory sources
  3. Public Registries: Company registries, land registries, securities filings
  4. Controlled Web Access: Only when explicitly enabled by user, with source tracking

2. Core Platform

2.1 Glass Box Transparency

Glass box is not a marketing term - it is a design principle that pervades every aspect of HectoVault's operation. Unlike black box AI that produces outputs without explanation, glass box AI shows its work.

  • Source Attribution: Every claim linked to specific source documents
  • Reasoning Chain: Step-by-step explanation of how conclusions were reached
  • Rule Application: Which playbook rules triggered, and why
  • Confidence Levels: Explicit indication of certainty for each assessment
  • Verification Status: Clear marking of verified vs. unverified information
[VERIFIED]
Source confirmed in authoritative legal database
[INTERNAL]
Source found in customer knowledge base
[UNVERIFIED]
Claim could not be verified - flagged for manual review

2.2 Dialogue-Driven Interaction

HectoVault does not render verdicts. It engages in structured dialogue that keeps legal professionals in control. The system asks clarifying questions, presents options with reasoning, and defers to professional judgment.

2.3 Custom Playbook Engine

Legal teams maintain review standards that define acceptable terms, required clauses, and escalation triggers. HectoVault enforces these standards consistently.

playbook:
name: "MSA Review - Standard"
version: "2.3"
rules:
- clause_type: liability_cap
acceptable_range: ["1x contract value", "2x contract value"]
flag_if_below: "1x contract value"
action: escalate_to_senior

2.4 Knowledge Base Integration

The knowledge base provides institutional context that transforms AI from generic assistant to informed colleague. All indexing and retrieval occurs locally - document content is never transmitted externally.

3. Jurisdictional Legal Infrastructure

HectoVault builds verified connections to authoritative legal sources on a country-by-country basis. This is not generic web search - it is curated access to the sources that matter for legal work.

Three-Pillar Architecture

1. Legislation

Official gazette databases (Riigi Teataja, EUR-Lex), consolidated statute texts with amendment tracking

2. Case Law

National court decision databases, CJEU and ECHR jurisprudence, citation verification

3. Public Registries

Commercial registries, land registries, securities filings, insolvency registers

Current Coverage

Estonia
  • • Riigi Teataja (legislation)
  • • Riigikohus (Supreme Court)
  • • e-Business Register
European Union
  • • EUR-Lex (EU law)
  • • CJEU / ECHR cases
  • • BRIS, EUIPO registries

Planned: Germany, UK, US jurisdictional modules

4. Security and Compliance

Offline-First Design

  • No cloud dependencies: All processing occurs locally
  • No telemetry: No usage data transmitted
  • No training: Customer data never used for model training
  • No retention: Work product not saved for external purposes
  • Air-gap compatible: Deployable in fully isolated environments

Compliance Certifications

ISO 27001

Information security management

GDPR

Full compliance, DPA available

5. Deployment Options

Docker Container

docker pull hectovault/contract-intel:latest
docker run -v /data:/app/data -p 8080:8080 hectovault/contract-intel

Requirements: Docker 20.10+, 16GB RAM, 50GB storage

On-Premise Server

Ubuntu 22.04 LTS, RHEL 8+, Windows Server 2019+. Automated provisioning scripts. High-availability configuration available.

Air-Gapped Installation

Complete offline package. USB/secure media transfer. Manual update with integrity verification.

6. Conclusion

HectoVault is built by lawyers who understand why lawyers hesitate to adopt AI. The platform addresses four specific barriers: confidentiality through offline-first deployment, hallucinations through glass box transparency and verified sourcing, data protection through ISO 27001 and GDPR compliance, and loss of control through dialogue-driven interaction.

For legal teams that need AI assistance without compromising on trust, methodology, or data sovereignty, HectoVault provides a path forward.

References

[1] Ben-Or, M., Goldwasser, S., Wigderson, A. "Completeness Theorems for Non-Cryptographic Fault-Tolerant Distributed Computation." STOC, 1988.

[2] Goldreich, O., Micali, S., Wigderson, A. "How to Play any Mental Game." STOC, 1987.

[3] Bogetoft, P., et al. "Secure Multiparty Computation Goes Live." Financial Cryptography, 2009.

[4] Lewis, P., et al. "Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks." NeurIPS, 2020.

Download Full Whitepaper

v4.2 • 13 pages • December 2025 • Complete Technical Documentation