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Radar connections to Radiator are authenticated with CHAP. Plaintext passwords are never sent on the connection. However, Radar connections are not encrypted. If you are concerned about proprietary information being exposed by sniffing the TCP connection, you should consider tunnelling the Radar TCP connection using SSH or similar.
If you are using hardwired username and passwords in your Radiator Monitor configuration, you should take care that unauthorized personnel cannot access the Radiator configuration file to read the Radar access password.
The Radar configuration file may record the Radar access password for each Radiator saved in the configuration file. You should take care that it is not readable by unauthorized personnel. The Radar configuration file is in .radar.ini in your home directory on Unix, and in radar.ini in the current directory on Windows.