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We dont store wallet files anywhere . Wallets are derivated from your keys when needed( eg when you need to sign a tx) Instead we store
identity.dsa ← TEE-wrapped (DNAT header)
identity.kem ← TEE-wrapped (DNAT header)
mnemonic.enc ← Kyber1024 KEM + AES-256-GCM
Even if your phone is stolen, the keys still cannot be accessed because the operating system has no access to the TEE. An attacker could root the phone and extract the encrypted key material, but that alone is not enough. To decrypt and use those keys, they would also need the second part of the key material stored inside the TEE, and that is not accessible through the operating system.