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title: Secrets Management
summary: Master key, encryption, and strict mode
---
Paperclip encrypts secrets at rest using a local master key. Agent environment variables that contain sensitive values (API keys, tokens) are stored as encrypted secret references.
## Default Provider: `local_encrypted`
Secrets are encrypted with a local master key stored at:
```
~/.paperclip/instances/default/secrets/master.key
```
This key is auto-created during onboarding. The key never leaves your machine.
## Configuration
### CLI Setup
Onboarding writes default secrets config:
```sh
pnpm paperclipai onboard
```
Update secrets settings:
```sh
pnpm paperclipai configure --section secrets
```
Validate secrets config:
```sh
pnpm paperclipai doctor
```
### Environment Overrides
| Variable | Description |
|----------|-------------|
| `PAPERCLIP_SECRETS_MASTER_KEY` | 32-byte key as base64, hex, or raw string |
| `PAPERCLIP_SECRETS_MASTER_KEY_FILE` | Custom key file path |
| `PAPERCLIP_SECRETS_STRICT_MODE` | Set to `true` to enforce secret refs |
## Strict Mode
When strict mode is enabled, sensitive env keys (matching `*_API_KEY`, `*_TOKEN`, `*_SECRET`) must use secret references instead of inline plain values.
```sh
PAPERCLIP_SECRETS_STRICT_MODE=true
```
Recommended for any deployment beyond local trusted.
## Migrating Inline Secrets
If you have existing agents with inline API keys in their config, migrate them to encrypted secret refs:
```sh
pnpm secrets:migrate-inline-env # dry run
pnpm secrets:migrate-inline-env --apply # apply migration
```
## Secret References in Agent Config
Agent environment variables use secret references:
```json
{
"env": {
"ANTHROPIC_API_KEY": {
"type": "secret_ref",
"secretId": "8f884973-c29b-44e4-8ea3-6413437f8081",
"version": "latest"
}
}
}
```
The server resolves and decrypts these at runtime, injecting the real value into the agent process environment.
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