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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.

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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.

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Configuration

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CLI Setup

Onboarding writes default secrets config: 
pnpm paperclipai onboard
Update secrets settings: 
pnpm paperclipai configure --section secrets
Validate secrets config: 
pnpm paperclipai doctor

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Environment Overrides

VariableDescription
PAPERCLIP_SECRETS_MASTER_KEY32-byte key as base64, hex, or raw string
PAPERCLIP_SECRETS_MASTER_KEY_FILECustom key file path
PAPERCLIP_SECRETS_STRICT_MODESet to true to enforce secret refs

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Strict Mode

When strict mode is enabled, sensitive env keys (matching *_API_KEY, *_TOKEN, *_SECRET) must use secret references instead of inline plain values. 
PAPERCLIP_SECRETS_STRICT_MODE=true
Recommended for any deployment beyond local trusted.

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Migrating Inline Secrets

If you have existing agents with inline API keys in their config, migrate them to encrypted secret refs: 
pnpm secrets:migrate-inline-env         # dry run
pnpm secrets:migrate-inline-env --apply # apply migration

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Secret References in Agent Config

Agent environment variables use secret references: 
{
  "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.