1. Create
You choose a parent folder and a name, for example ~/Archive.
- FolderSafe creates
~/.Archive.foldersafe/data.sparsebundle, an AES-256 encrypted APFS sparse bundle whose password is your master password. - It writes
vault.jsonnext to it: copies of the master password encrypted to your recovery phrase and, if you turn it on, to a Touch ID key. - It mounts the image, writes a marker, ejects it, unlocks it again with your password and decrypts the recovery copy to check the phrase. Only then is the folder handed to you.