What Are the Security Risks Associated with Using a Trusted Execution Environment (TEE) for MEV Protection?

TEEs are secure, isolated processing environments (e.g. Intel SGX).

The main risk is the reliance on the hardware manufacturer's security, which is a form of centralization. If a vulnerability is found in the TEE's hardware or software attestation process, the "trusted" environment could be compromised, allowing the TEE operator (e.g. the block builder) to view the encrypted transactions and extract MEV without detection.

This introduces a single point of failure and trust assumption.