Your KeePass database file is encrypted using a master key.
This master key can consist of multiple components:
a master password, a key file and/or a key that is protected
using the current Windows user account.
For opening a database file, all components of the
master key are required.
If you forget/lose any of the master key components (or forget the
composition), all data stored in the database is lost.
There is no backdoor and no universal key that can open your database.
Master Password
If you use a master password, you only have to remember one password or
passphrase (which should be good!) to open your database.
KeePass features a protection against brute-force and dictionary attacks;
see the security help page
for details.
Key File
A key file is a file that contains a key (and possibly additional data,
e.g. a hash that allows to verify the integrity of the key).
The file extension typically is 'keyx' or 'key'.
A key file must not be modified, otherwise you cannot open your database
anymore. If you want to use a different key file, open the dialog for
changing the master key (via 'File' → 'Change Master Key')
and create/select the new key file.
Two-factor protection.
A key file is something that you must have in order to be able
to open the database
(in contrast to a master password, which you must know).
If you use both a key file and a master password, you have a two-factor
protection: possession and knowledge.
Location.
As mentioned above, the idea of a key file is that you have
something. If an attacker obtains both your database file and your
key file, then the key file provides no protection.
Therefore, the two files must be stored in different locations.
For example, you could store the key file on a separate USB stick.
Hiding the location.
The key file content must be kept secret, not its location
(file path/name). Trying to hide the key file (e.g. by storing it among
a thousand other files, in the hope that an attacker does not know which
file is the correct one) typically does not increase the security, because
it is easy to find out the correct file (e.g. by inspecting the last access
times of files, lists of recently used files of the operating system,
file system auditing logs, anti-virus software logs, etc.).
KeePass has an option for remembering the paths of key files, which is turned
on by default; turning it off typically just decreases the usability without
increasing the security.
This option only affects KeePass itself (i.e. turning it off does not prevent
the operating system or other software from remembering the paths).
If you only want to prevent a key file from appearing in the recently used files
list of Windows (which does not really affect the security) after selecting it
in KeePass, consider turning on the option for entering the master key on a
secure desktop (KeePass will then show a
simpler key file selection dialog that does not add the file to the recently
used files list of Windows).
Backup.
You should create a backup of your key file (onto an independent data
storage device).
If your key file is an XML file (which is the default), you can also create
a backup on paper (KeePass 2.x provides a command for printing a key file
backup in the menu 'File' → 'Print').
In any case, the backup should be stored in a secure location, where only
you and possibly a few other people that you trust have access to.
More details about backing up a key file can be found in the
ABP FAQ.
Formats.
KeePass supports the following key file formats:
- XML (recommended, default).
There is an XML format for key files.
KeePass 2.x uses this format by default, i.e. when creating a key file
in the master key dialog, an XML key file is created.
The syntax and the semantics of the XML format allow to detect certain
corruptions (especially such caused by faulty hardware or transfer problems),
and a hash (in XML key files version 2.0 or higher) allows to
verify the integrity of the key.
This format is resistant to most encoding and new-line character changes
(which is useful for instance when the user is opening and saving the
key file or when transferring it from/to a server).
Such a key file can be printed (as a backup on paper),
and comments can be added in the file (with the usual XML syntax:
<!-- ... -->).
It is the most flexible format; new features can be added easily
in the future.
- 32 bytes.
If the key file contains exactly 32 bytes, these are used as
a 256-bit cryptographic key.
This format requires the least disk space.
- Hexadecimal.
If the key file contains exactly 64 hexadecimal characters
(0-9 and A-F, in UTF-8/ASCII encoding, one line, no spaces),
these are decoded to a 256-bit cryptographic key.
- Hashed.
If a key file does not match any of the formats above,
its content is hashed using a cryptographic hash function
in order to build a key (typically a 256-bit key with SHA-256).
This allows to use arbitrary files as key files.
Reuse.
You can use one key file for multiple database files.
This can be convenient, but please keep in mind that when an
attacker obtains your key file, you have to change the master keys
of all database files protected with this key file.
KeePass 1.x Only
In order to reuse an existing key file, click on the button with the
'Save' icon in the master key creation dialog and select the existing file.
After accepting the dialog, KeePass will ask you whether to
overwrite or reuse the file
(see screenshot).
KeePass 2.x Only
In order to reuse an existing key file, click on the 'Browse' button
in the master key creation dialog.
Windows User Account
KeePass 1.x Only
KeePass 1.x does not support encrypting databases using Windows user account
credentials. Only KeePass 2.x and higher support this.
KeePass 2.x Only
KeePass can make the database dependent on the current Windows user
account. If you enable this option, you can only open the database when
you are logged in as the same Windows user when creating the database.

Be very careful with using this option. If your Windows user account
gets deleted, you won't be able to open your KeePass database anymore.
Also, when using this option at home and your computer breaks (hard disk
damaged), it is not
enough to just create a new Windows account on the new installation with the
same name and password;
you need to copy the complete account (i.e. SID, ...). This is not
a simple task, so if you don't know how to do this, it is highly recommended
that you don't enable this option.
Detailed instructions how to recover a Windows user account can be found here:
' Recover Windows User Account Credentials'
(a short technical tutorial can be found in a Microsoft TechNet article:
' How to recover a Vault corrupted by lost DPAPI keys').
You can change the password of the Windows user account freely;
this does not affect the KeePass database.
Note that changing the password (e.g. a user using the Control Panel
or pressing Ctrl+Alt+Delete
and selecting 'Change Password') and
resetting it to a new one (e.g. an administrator using a
NET USER <User> <NewPassword>
command) are two different things.
After changing your password, you can still open your KeePass database.
When resetting the password to a new one, access usually is not possible
anymore (because the user's DPAPI keys are lost), but there are exceptions
(for example when the user is in a domain, Windows can retrieve the user's DPAPI keys
from a domain controller, or a home user can use a previously created
Password Reset Disk).
Details can be found in the MSDN article
' Windows Data Protection' and in the support article
' How to troubleshoot the Data Protection API (DPAPI)'.
If you decide to use this option, it is highly recommended not to rely
on it exclusively, but to additionally use one of the other two options (password
or key file).
Instead of backing up the Windows user account, you can alternatively create
an unencrypted backup of the key using the
' Windows User Account Backup and Restore Utility'.
As such a backup is not encrypted, it must be stored in a secure location.
Protection using user accounts is unsupported on Windows 98 / ME.
For Administrators: Specifying Minimum Properties of Master Keys
Administrators can specify a minimum length
and/or the minimum estimated quality that master passwords must have in
order to be accepted. You can tell KeePass
to check these two minimum requirements by adding/editing
appropriate definitions in the
INI/XML configuration file.
KeePass 1.x Only
The value of the KeeMasterPasswordMinLength key can contain
the minimum master password length in characters. For example, by specifying
KeeMasterPasswordMinLength=10, KeePass will only accept
master passwords that have at least 10 characters.
The value of the KeeMasterPasswordMinQuality key can contain
the minimum estimated quality in bits that master passwords must have. For example,
by specifying KeeMasterPasswordMinQuality=64, only master passwords
with an estimated quality of at least 64 bits will be accepted.
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