# Securing Your Stake Pool Using a Hardware Wallet

You can secure your **pool pledge account** and **pool reward account** using a [Trezor](https://trezor.io/) or [Ledger Nano S/X](https://www.ledger.com/) hardware wallet. Credits to [angelstakepool](https://github.com/angelstakepool/add-hw-wallet-owner-to-pool) for documenting the procedure.

{% hint style="danger" %}
**Critical Reminder**: After adding a 2nd pool owner using a hardware wallet, you **must wait 2 epochs** before you transfer pledge funds from your **CLI Method** or **Mnemonic Method** wallet to hardware wallet. Do not transfer any funds earlier because your pool pledge will not be met.
{% endhint %}

First, delegate your 2nd pool owner to your stake pool with Daedalus or Yoroi or Adalite.io

Install [cardano-hw-cli](https://github.com/vacuumlabs/cardano-hw-cli) to interact with your hardware wallet.

{% tabs %}
{% tab title="local PC or block producer node" %}

```bash
# Hardware Wallet works with Trezor and Ledger Nano S/X
# Reference https://github.com/vacuumlabs/cardano-hw-cli/blob/develop/docs/installation.md

cd $NODE_HOME
wget https://github.com/vacuumlabs/cardano-hw-cli/releases/download/v1.13.0/cardano-hw-cli_1.13.0-1.deb
sudo dpkg --install ./cardano-hw-cli_1.13.0-1.deb
```

{% endtab %}
{% endtabs %}

Connect and unlock your hardware wallet on your local PC or block producer node.

To generate the verification key and hardware wallet signing file, type:

{% tabs %}
{% tab title="local PC or block producer node" %}

```bash
cardano-hw-cli address key-gen \
  --path 1852H/1815H/0H/2/0 \
  --verification-key-file hw-stake.vkey \
  --hw-signing-file hw-stake.hwsfile
```

{% endtab %}
{% endtabs %}

{% hint style="info" %}
As needed, you can edit the value of the `--path` option to specify the derivation path to the key with which you want to sign. `hw-stake.vkey` is not sensitive and may be shared publicly. `hw-stake.hwsfile` does NOT contain the raw private key.
{% endhint %}

Copy **hw-stake.vkey** to your **cold environment.**

Update stake pool registration certificate to add your new hardware wallet owner, which will secure both your **pool pledge account** and **pool reward account**.

Tailor the below registration-certificate transaction with your pool's settings.

If you have **multiple relay nodes,** then [change your parameters accordingly](/coins/overview-ada/guide-how-to-build-a-haskell-stakepool-node/part-iii-operation/registering-your-stake-pool.md#multiplerelays).

{% tabs %}
{% tab title="air-gapped offline machine" %}

```bash
cardano-cli conway stake-pool registration-certificate \
    --cold-verification-key-file $HOME/cold-keys/node.vkey \
    --vrf-verification-key-file vrf.vkey \
    --pool-pledge 1000000000 \
    --pool-cost 170000000 \
    --pool-margin 0.10 \
    --pool-reward-account-verification-key-file hw-stake.vkey \
    --pool-owner-stake-verification-key-file stake.vkey \
    --pool-owner-stake-verification-key-file hw-stake.vkey \
    --mainnet \
    --single-host-pool-relay <dns based relay, example ~ relaynode1.pool.example.net> \
    --pool-relay-port 6000 \
    --metadata-url <url where you uploaded poolMetaData.json> \
    --metadata-hash $(cat poolMetaDataHash.txt) \
    --out-file pool.cert
```

{% endtab %}
{% endtabs %}

{% hint style="info" %}
:eyes: Notice the **pool-reward-account** and additional **pool-ownerstake-verification-key-file** lines point to **hw-stake.vkey**.

Example above is pledging 1000 ADA with a fixed pool cost of 170 ADA and a pool margin of 10%.
{% endhint %}

Copy **pool.cert** to your **hot environment.**

You need to find the **tip** of the blockchain to set the **invalid-hereafter** parameter properly.

{% tabs %}
{% tab title="block producer node" %}

```bash
currentSlot=$(cardano-cli conway query tip --mainnet | jq -r '.slot')
echo Current Slot: $currentSlot
```

{% endtab %}
{% endtabs %}

Retrieve the UTXOs available for your payment address and calculate the balance.

{% tabs %}
{% tab title="block producer node" %}

```bash
# Retrieve the list of UTXOs available for your payment address
utxo_json=$(cardano-cli conway query utxo --address $(cat payment.addr) --mainnet)

# Initialize variables
tx_in=""
total_balance=0
txcnt=0

# Loop through the list of UTXOs
while read -r utxo; do
    # Retrieve the values for the current UTXO
    values=$(jq -r --arg k "${utxo}" '.[$k]' <<< "${utxo_json}")
    # Retrieve datum associated with the UTXO
    datum=$(jq -r '.datum' <<< "${values}")
    # Retrieve the reference script associated with the UTXO
    script=$(jq -r '.referenceScript' <<< "${values}")
	# If limits on spending the UTXO may exist, then skip the UTXO
    if [[ ${datum} == 'null' && ${script} == 'null' ]]
    then
        hash=${utxo%%#*}
        idx=${utxo#*#}
        utxo_balance=$(jq -r '.value.lovelace' <<< "${values}")
        total_balance=$((${total_balance}+${utxo_balance}))
        echo "TxHash: ${hash}#${idx}"
        echo "ADA: ${utxo_balance}"
        tx_in="${tx_in} --tx-in ${hash}#${idx}"
		txcnt=$((txcnt + 1))
    fi
done <<< "$(jq -r 'keys[]' <<< "${utxo_json}")"

echo
echo "Total available ADA balance: ${total_balance}"
echo "Number of UTXOs: ${txcnt}"
echo "Final --tx-in string:${tx_in}"
```

{% endtab %}
{% endtabs %}

Run the build-raw transaction command.

{% tabs %}
{% tab title="block producer node" %}

```bash
cardano-cli conway transaction build-raw \
    ${tx_in} \
    --mary-era \
    --tx-out $(cat payment.addr)+${total_balance} \
    --invalid-hereafter $(( ${currentSlot} + 10000 )) \
    --fee 200000 \
    --certificate-file pool.cert \
    --out-file tx.tmp
```

{% endtab %}
{% endtabs %}

Calculate the minimum fee:

{% tabs %}
{% tab title="block producer node" %}

```bash
fee=$(cardano-cli conway transaction calculate-min-fee \
    --tx-body-file tx.tmp \
    --tx-in-count ${txcnt} \
    --tx-out-count 1 \
    --mainnet \
    --witness-count 4 \
    --byron-witness-count 0 \
    --protocol-params-file params.json | jq -r '.fee')
echo fee: $fee
```

{% endtab %}
{% endtabs %}

Calculate your change output.

{% tabs %}
{% tab title="block producer node" %}

```bash
txOut=$((${total_balance}-${fee}))
echo txOut: ${txOut}
```

{% endtab %}
{% endtabs %}

Build the transaction.

{% tabs %}
{% tab title="block producer node" %}

```bash
cardano-cli conway transaction build-raw \
    ${tx_in} \
    --mary-era \
    --tx-out $(cat payment.addr)+${txOut} \
    --invalid-hereafter $(( ${currentSlot} + 10000 )) \
    --fee ${fee} \
    --certificate-file pool.cert \
    --out-file tx-pool.raw
```

{% endtab %}
{% endtabs %}

Copy **tx-pool.raw** to your **cold environment.**

This multi signature transaction will be signed using witnesses.

You need the following 4 witnesses.

* node.skey
* hw-stake.hwsfile
* stake.skey
* payment.skey

Create a witness using node.skey,

{% tabs %}
{% tab title="air-gapped offline machine" %}

```bash
cardano-cli conway transaction witness \
  --tx-body-file tx-pool.raw \
  --signing-key-file $HOME/cold-keys/node.skey \
  --mainnet \
  --out-file node.witness
```

{% endtab %}
{% endtabs %}

Create a witness using stake.skey,

{% tabs %}
{% tab title="air-gapped offline machine" %}

```
cardano-cli conway transaction witness \
  --tx-body-file tx-pool.raw \
  --signing-key-file stake.skey \
  --mainnet \
  --out-file stake.witness
```

{% endtab %}
{% endtabs %}

Create a witness using payment.skey,

{% tabs %}
{% tab title="air-gapped offline machine" %}

```
cardano-cli conway transaction witness \
  --tx-body-file tx-pool.raw \
  --signing-key-file payment.skey \
  --mainnet \
  --out-file payment.witness
```

{% endtab %}
{% endtabs %}

Copy **tx-pool.raw** to local PC or block producer node, which is where your hardware wallet device is connected. Ensure your hardware wallet is unlocked and ready.

Create a witness using hw-stake.hwsfile

{% tabs %}
{% tab title="local PC or block producer node" %}

```
cardano-hw-cli transaction witness \
  --tx-file tx-pool.raw \
  --hw-signing-file hw-stake.hwsfile \
  --mainnet \
  --out-file hw-stake.witness
```

{% endtab %}
{% endtabs %}

Copy **hw-stake.witness** to your **cold environment.**

{% tabs %}
{% tab title="air-gapped offline machine" %}

```
cardano-cli conway transaction assemble \
  --tx-body-file tx-pool.raw \
  --witness-file node.witness \
  --witness-file stake.witness \
  --witness-file payment.witness \
  --witness-file hw-stake.witness \
  --out-file tx-pool.multisign
```

{% endtab %}
{% endtabs %}

Copy **tx-pool.multisign** to your **hot environment.**

Send the transaction.

{% tabs %}
{% tab title="block producer node" %}

```bash
cardano-cli conway transaction submit \
    --tx-file tx-pool.multisign \
    --mainnet
```

{% endtab %}
{% endtabs %}

Check your updated pool information on [adapools.org](https://adapools.org) which should now show your hardware wallet as a pool owner.

{% hint style="danger" %}
**Important Reminder**:fire: These changes take effect in two epochs. Do **NOT** transfer pledge funds to your hardware wallet until at least two epochs later.
{% endhint %}

{% hint style="info" %}
After two epoch snapshots have passed, you can safely transfer pledge funds from your CLI Method or Mnemonic Method wallet to your new hardware wallet owner account. :rocket:
{% endhint %}


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