diff --git a/crates/apps/spawntest/src/main.rs b/crates/apps/spawntest/src/main.rs
index 8cb4476..63b634b 100644
--- a/crates/apps/spawntest/src/main.rs
+++ b/crates/apps/spawntest/src/main.rs
@@ -125,10 +125,46 @@ fn revoke_stops_a_running_app(died: CapSlot) -> Result<(), &'static str> {
     Ok(())
 }
 
+/// The owner's area is sealed: seeded from the factory, and what is
+/// written there one boot reads back the next.
+fn encrypted_home(fs: &mut Storage) -> Result<(), &'static str> {
+    let mut home = [0u8; 512];
+    let mut factory = [0u8; 512];
+    let read = |fs: &mut Storage, path: &[u8], out: &mut [u8]| -> Result<usize, &'static str> {
+        let h = fs.open(path).map_err(|_| "cannot open")?;
+        let n = fs.read(h, out).map_err(|_| "cannot read (a seal broken?)")?;
+        let _ = fs.close(h);
+        Ok(n)
+    };
+    let n = read(fs, b"home/readme.txt", &mut home)?;
+    let m = read(fs, b"factory/home/readme.txt", &mut factory)?;
+    if home[..n] != factory[..m] {
+        return Err("the encrypted home does not hold the factory's readme");
+    }
+    libkos::println!("spawntest: home seeded from the factory, reads back through its seal: ok");
+    const NOTE: &[u8] = b"sealed across a reboot";
+    let mut back = [0u8; 64];
+    match read(fs, b"home/persist.txt", &mut back) {
+        Ok(n) if &back[..n] == NOTE => libkos::println!("spawntest: an encrypted file from the last boot reads back: ok"),
+        Ok(_) => return Err("an encrypted file from the last boot reads back wrong"),
+        Err(_) => {
+            let h = fs.create(b"home/persist.txt").map_err(|_| "cannot create in home")?;
+            let wrote = fs.write(h, NOTE) == Ok(NOTE.len());
+            let _ = fs.close(h);
+            if !wrote {
+                return Err("cannot write in home");
+            }
+            libkos::println!("spawntest: wrote an encrypted file for the next boot");
+        }
+    }
+    Ok(())
+}
+
 fn check() -> Result<(), &'static str> {
     let mut fs = Storage::attach(STORAGE, STORAGE_BUF_VA).map_err(|_| "cannot attach to storage")?;
     write_a_file(&mut fs)?;
     libkos::println!("spawntest: a file written to ext4 reads back: ok");
+    encrypted_home(&mut fs)?;
 
     let died = syscall::create_notification().map_err(|_| "no notification")?;
     narrow_storage(&mut fs, died)?;
diff --git a/crates/init/src/factory.rs b/crates/init/src/factory.rs
new file mode 100644
index 0000000..33d0d3d
--- /dev/null
+++ b/crates/init/src/factory.rs
@@ -0,0 +1,137 @@
+//! The encrypted areas' starting point. The image ships starter content
+//! (the owner's first files, the pre-approved decisions) in plaintext under
+//! `factory/`; with a new master key (a fresh device, or one just wiped)
+//! init empties the encrypted areas and seeds them from it, storage
+//! sealing what is written. A device just wiped so looks factory-fresh,
+//! not full of files no key opens. An area simply missing (a disk image
+//! rebuilt) is seeded too.
+
+use libkos::fs::Storage;
+use types::storage::MAX_PATH;
+
+const AREAS: [&str; 3] = ["home", "system", "data"];
+/// Entries handled per listing; a folder with more is listed again.
+const BATCH: usize = 32;
+const NAME: usize = types::storage::DIR_NAME_SIZE;
+
+/// A path being built, `a/b/c`.
+#[derive(Clone, Copy)]
+struct Path {
+    bytes: [u8; MAX_PATH],
+    len: usize,
+}
+
+impl Path {
+    fn new(s: &str) -> Self {
+        let mut p = Self { bytes: [0; MAX_PATH], len: 0 };
+        p.bytes[..s.len()].copy_from_slice(s.as_bytes());
+        p.len = s.len();
+        p
+    }
+
+    fn join(&self, name: &[u8]) -> Option<Self> {
+        let mut p = *self;
+        let end = p.len + 1 + name.len();
+        let room = p.bytes.get_mut(p.len..end)?;
+        room[0] = b'/';
+        room[1..].copy_from_slice(name);
+        p.len = end;
+        Some(p)
+    }
+
+    fn as_bytes(&self) -> &[u8] {
+        &self.bytes[..self.len]
+    }
+}
+
+/// Up to `BATCH` entries of `dir`: names and whether each is a folder.
+fn entries(fs: &mut Storage, dir: &Path) -> Option<([([u8; NAME], usize, bool); BATCH], usize)> {
+    let mut out = [([0u8; NAME], 0, false); BATCH];
+    let mut n = 0;
+    fs.list_dir(dir.as_bytes(), |e| {
+        let name = e.name();
+        if name != b"." && name != b".." && n < BATCH {
+            out[n].0[..name.len()].copy_from_slice(name);
+            out[n].1 = name.len();
+            out[n].2 = e.is_dir;
+            n += 1;
+        }
+    })
+    .ok()?;
+    Some((out, n))
+}
+
+/// Removes everything inside `dir`, keeping `dir`.
+fn empty(fs: &mut Storage, dir: &Path) -> Result<(), &'static str> {
+    loop {
+        let (list, n) = entries(fs, dir).ok_or("cannot list an area to empty it")?;
+        if n == 0 {
+            return Ok(());
+        }
+        for (name, len, is_dir) in &list[..n] {
+            let child = dir.join(&name[..*len]).ok_or("path too long")?;
+            if *is_dir {
+                empty(fs, &child)?;
+                fs.rmdir(child.as_bytes()).map_err(|_| "cannot remove a folder")?;
+            } else {
+                fs.delete(child.as_bytes()).map_err(|_| "cannot remove a file")?;
+            }
+        }
+    }
+}
+
+/// Copies the file `from` to a new file `to`.
+fn copy_file(fs: &mut Storage, from: &Path, to: &Path, buf: &mut [u8]) -> Result<(), &'static str> {
+    let src = fs.open(from.as_bytes()).map_err(|_| "cannot open a factory file")?;
+    let dst = fs.create(to.as_bytes()).map_err(|_| "cannot create a file")?;
+    let done = loop {
+        match fs.read(src, buf) {
+            Ok(0) => break Ok(()),
+            Ok(n) if fs.write(dst, &buf[..n]) == Ok(n) => {}
+            _ => break Err("cannot copy a factory file"),
+        }
+    };
+    let _ = fs.close(src);
+    let _ = fs.close(dst);
+    done
+}
+
+/// Copies everything in `from` into `to` (which exists).
+fn copy_tree(fs: &mut Storage, from: &Path, to: &Path, buf: &mut [u8]) -> Result<(), &'static str> {
+    let (list, n) = match entries(fs, from) {
+        Some(l) => l,
+        // Nothing shipped for this area.
+        None => return Ok(()),
+    };
+    for (name, len, is_dir) in &list[..n] {
+        let (src, dst) = (from.join(&name[..*len]).ok_or("path too long")?, to.join(&name[..*len]).ok_or("path too long")?);
+        if *is_dir {
+            fs.mkdir(dst.as_bytes()).map_err(|_| "cannot make a folder")?;
+            copy_tree(fs, &src, &dst, buf)?;
+        } else {
+            copy_file(fs, &src, &dst, buf)?;
+        }
+    }
+    Ok(())
+}
+
+/// Readies the encrypted areas once storage has the key: `fresh` when the
+/// master key is new.
+pub(crate) fn prepare(fs: &mut Storage, fresh: bool, buf: &mut [u8]) -> Result<(), &'static str> {
+    for area in AREAS {
+        let path = Path::new(area);
+        let present = fs.list_dir(path.as_bytes(), |_| {}).is_ok();
+        if present && !fresh {
+            continue;
+        }
+        if present {
+            empty(fs, &path)?;
+        } else {
+            fs.mkdir(path.as_bytes()).map_err(|_| "cannot make an area")?;
+        }
+        let factory = Path::new("factory").join(area.as_bytes()).ok_or("path too long")?;
+        copy_tree(fs, &factory, &path, buf)?;
+        libkos::println!("init: {} {}", if fresh { "set up" } else { "seeded" }, area);
+    }
+    Ok(())
+}
diff --git a/crates/init/src/launch.rs b/crates/init/src/launch.rs
index 823a0ae..02ddc4a 100644
--- a/crates/init/src/launch.rs
+++ b/crates/init/src/launch.rs
@@ -114,8 +114,9 @@ impl<'a> Launcher<'a> {
                 note = self.give(*device, ep);
             }
             if p.unlocks {
-                unlock(ep)?;
-                note = ", the owner is in";
+                let fresh = unlock(ep)?;
+                crate::factory::prepare(self.storage, fresh, self.scratch)?;
+                note = if fresh { ", the owner is in (a new key)" } else { ", the owner is in" };
             }
             if console.is_some() {
                 hand_over_console(ep);
@@ -154,20 +155,26 @@ impl<'a> Launcher<'a> {
 }
 
 /// Waits for the gatekeeper behind `ep` to authenticate the owner, then
-/// passes the master key on to storage, which alone keeps it.
-fn unlock(ep: CapSlot) -> Result<(), &'static str> {
-    use types::gatekeeper::{KEY, UNLOCK, reply};
-    match syscall::request(ep, [UNLOCK, 0, 0, 0]) {
-        Ok([reply::OK, ..]) => {}
+/// passes the master key and a fresh seed on to storage, which alone keeps
+/// them. Whether the key is new.
+fn unlock(ep: CapSlot) -> Result<bool, &'static str> {
+    use types::gatekeeper::{KEY, SEED, UNLOCK, reply};
+    let fresh = match syscall::request(ep, [UNLOCK, 0, 0, 0]) {
+        Ok([reply::OK, fresh, ..]) => fresh != 0,
         _ => return Err("the gatekeeper could not unlock"),
+    };
+    for (ask, give) in [(KEY, types::storage::op::SET_KEY), (SEED, types::storage::op::SET_SEED)] {
+        let mut secret = syscall::request(ep, [ask, 0, 0, 0]).map_err(|_| "the gatekeeper gave no key")?;
+        let given = [0, 1].iter().all(|&half| {
+            let words = [give, half, secret[half * 2], secret[half * 2 + 1]];
+            syscall::request(crate::STORAGE_EP, words).is_ok_and(|r| r[0] == types::storage::reply::OK)
+        });
+        secret.fill(0);
+        if !given {
+            return Err("storage would not take the key");
+        }
     }
-    let mut key = syscall::request(ep, [KEY, 0, 0, 0]).map_err(|_| "the gatekeeper gave no key")?;
-    let given = [0, 1].iter().all(|&half| {
-        let words = [types::storage::op::SET_KEY, half, key[half * 2], key[half * 2 + 1]];
-        syscall::request(crate::STORAGE_EP, words).is_ok_and(|r| r[0] == types::storage::reply::OK)
-    });
-    key.fill(0);
-    if given { Ok(()) } else { Err("storage would not take the key") }
+    Ok(fresh)
 }
 
 /// From here on init prints through the log server, like everyone else,
diff --git a/crates/init/src/lib.rs b/crates/init/src/lib.rs
index 2fd98bc..b8d72b3 100644
--- a/crates/init/src/lib.rs
+++ b/crates/init/src/lib.rs
@@ -4,6 +4,7 @@
 extern crate alloc;
 
 mod devices;
+mod factory;
 mod launch;
 mod load;
 mod manifest;
diff --git a/crates/libkos/src/fs.rs b/crates/libkos/src/fs.rs
index 48978e8..23518d5 100644
--- a/crates/libkos/src/fs.rs
+++ b/crates/libkos/src/fs.rs
@@ -136,6 +136,11 @@ impl Storage {
         self.with_path(op::MKDIR, path, reply::OK).map(|_| ())
     }
 
+    /// Removes the empty directory at `path`.
+    pub fn rmdir(&mut self, path: &[u8]) -> Result<()> {
+        self.with_path(op::RMDIR, path, reply::OK).map(|_| ())
+    }
+
     pub fn close(&mut self, handle: FileHandle) -> Result<()> {
         self.expect([op::CLOSE, handle.0 as usize, 0, 0], reply::OK).map(|_| ())
     }
diff --git a/crates/servers/gatekeeper/src/flow.rs b/crates/servers/gatekeeper/src/flow.rs
index 87655ae..b61a1ec 100644
--- a/crates/servers/gatekeeper/src/flow.rs
+++ b/crates/servers/gatekeeper/src/flow.rs
@@ -151,14 +151,21 @@ fn setup(ks: &mut impl Keystore, rng: &mut impl Random, prompt: &mut impl Prompt
     Ok(key)
 }
 
+/// The owner is in: the master key, and whether it is new (a fresh
+/// device, or one just wiped), so nothing sealed under an old one exists.
+pub struct Unlocked {
+    pub key: Key,
+    pub fresh: bool,
+}
+
 /// Authenticates the owner and returns the master key: setting one up on
 /// a fresh device, wiping on duress or too many failures (the device then
 /// looks fresh, and is set up anew).
-pub fn run(ks: &mut impl Keystore, rng: &mut impl Random, prompt: &mut impl Prompt, params: KdfParams, memory: &mut [Block]) -> Result<Key, Failure> {
+pub fn run(ks: &mut impl Keystore, rng: &mut impl Random, prompt: &mut impl Prompt, params: KdfParams, memory: &mut [Block]) -> Result<Unlocked, Failure> {
     loop {
         let (record, next) = load(ks)?;
         let Some(record) = record else {
-            return setup(ks, rng, prompt, params, memory);
+            return setup(ks, rng, prompt, params, memory).map(|key| Unlocked { key, fresh: true });
         };
         if record.must_wipe() {
             wipe(ks, &record, next, rng)?;
@@ -174,7 +181,7 @@ pub fn run(ks: &mut impl Keystore, rng: &mut impl Random, prompt: &mut impl Prom
         match record.unlock(typed.as_bytes(), memory) {
             Outcome::Real(key) => {
                 store(ks, 1 - next, &counted.next(|r| r.failures = 0))?;
-                return Ok(key);
+                return Ok(Unlocked { key, fresh: false });
             }
             Outcome::Duress => {
                 // Recorded as worn out first: a wipe cut short resumes.
diff --git a/crates/servers/gatekeeper/src/lib.rs b/crates/servers/gatekeeper/src/lib.rs
index a1bc2c9..c1b1497 100644
--- a/crates/servers/gatekeeper/src/lib.rs
+++ b/crates/servers/gatekeeper/src/lib.rs
@@ -18,7 +18,7 @@ use alloc::vec;
 use keystore::{Block, KdfParams};
 use libkos::syscall::{self, Received};
 use types::bounded::CapSlot;
-use types::gatekeeper::{KEY, UNLOCK, reply};
+use types::gatekeeper::{KEY, SEED, UNLOCK, reply};
 
 /// Where init's manifest put them: its own endpoint (devices arrive on
 /// it, then init's calls), then the terminal.
@@ -53,9 +53,10 @@ pub fn run() -> ! {
     };
     let mut memory = vec![Block::default(); KdfParams::DEFAULT.memory_kib as usize];
     libkos::println!("gatekeeper: waiting for the owner");
-    let key = flow::run(
+    let mut random = devices::Hardware(random);
+    let unlocked = flow::run(
         &mut devices::Disk(keystore),
-        &mut devices::Hardware(random),
+        &mut random,
         &mut devices::Terminal(TERMINAL),
         KdfParams::DEFAULT,
         &mut memory,
@@ -65,14 +66,19 @@ pub fn run() -> ! {
         *b = Block::default();
     }
     drop(memory);
-    match key {
-        Ok(key) => {
+    match unlocked {
+        Ok(flow::Unlocked { key, fresh }) => {
             libkos::println!("gatekeeper: unlocked");
             libkos::terminal::clear(TERMINAL);
-            let word = |i: usize| usize::from_le_bytes(key.0[i * 8..i * 8 + 8].try_into().unwrap_or([0; 8]));
-            if answer(UNLOCK, [reply::OK, 0, 0, 0]) {
-                let _ = answer(KEY, [word(0), word(1), word(2), word(3)]);
+            let words = |b: &[u8; 32]| core::array::from_fn::<usize, 4, _>(|i| usize::from_le_bytes(b[i * 8..i * 8 + 8].try_into().unwrap_or([0; 8])));
+            let mut seed = [0u8; 32];
+            let seeded = keystore::Random::fill(&mut random, &mut seed);
+            if seeded && answer(UNLOCK, [reply::OK, usize::from(fresh), 0, 0]) && answer(KEY, words(&key.0)) {
+                let _ = answer(SEED, words(&seed));
+            } else if !seeded {
+                let _ = answer(UNLOCK, [reply::FAILED, 0, 0, 0]);
             }
+            seed.fill(0);
         }
         Err(why) => {
             libkos::println!("gatekeeper: cannot go on: {:?}", why);
diff --git a/crates/servers/gatekeeper/src/tests/mod.rs b/crates/servers/gatekeeper/src/tests/mod.rs
index 2032dfe..98d215f 100644
--- a/crates/servers/gatekeeper/src/tests/mod.rs
+++ b/crates/servers/gatekeeper/src/tests/mod.rs
@@ -101,7 +101,11 @@ fn memory() -> Vec<Block> {
 }
 
 fn run_with(dev: &mut Device, owner: &mut Owner) -> Result<keystore::Key, Failure> {
-    run(dev, &mut Counter(5), owner, FAST, &mut memory())
+    run(dev, &mut Counter(5), owner, FAST, &mut memory()).map(|u| u.key)
+}
+
+fn fresh(dev: &mut Device, owner: &mut Owner) -> bool {
+    run(dev, &mut Counter(5), owner, FAST, &mut memory()).unwrap().fresh
 }
 
 /// A device set up with passcode 1234 and duress 0000; its master key.
@@ -219,3 +223,11 @@ fn a_duress_whose_wipe_is_torn_still_wipes_next_boot() {
     dev.cut_after = None;
     assert!(dev.record().unwrap().must_wipe(), "the duress was recorded before the wipe began");
 }
+
+#[test]
+fn only_a_new_master_key_counts_as_fresh() {
+    let mut dev = Device::new();
+    assert!(fresh(&mut dev, &mut Owner::types(&["1234", "1234", "0000", "0000"])), "first boot");
+    assert!(!fresh(&mut dev, &mut Owner::types(&["1234"])), "an unlock");
+    assert!(fresh(&mut dev, &mut Owner::types(&["0000", "5678", "5678", "", ""])), "after a duress wipe");
+}
diff --git a/crates/servers/storage-server/src/lib.rs b/crates/servers/storage-server/src/lib.rs
index 19c26ef..a5fe92a 100644
--- a/crates/servers/storage-server/src/lib.rs
+++ b/crates/servers/storage-server/src/lib.rs
@@ -76,6 +76,6 @@ pub fn run() -> ! {
         libkos::println!("storage: no ext4 filesystem it can read, exiting");
         syscall::exit();
     };
-    let mut srv = server::StorageServer::new(ext4, Kernel);
+    let mut srv = server::StorageServer::new(encrypted::Encrypted::new(ext4), Kernel);
     server_framework::serve(&mut srv, ep)
 }
diff --git a/crates/servers/storage-server/src/protocol.rs b/crates/servers/storage-server/src/protocol.rs
index c0f790d..d2affc4 100644
--- a/crates/servers/storage-server/src/protocol.rs
+++ b/crates/servers/storage-server/src/protocol.rs
@@ -27,6 +27,9 @@ pub enum StorageRequest {
     SetLog,
     /// Half (`half`: 0 or 1) of the master key.
     SetKey { half: usize, words: [usize; 2] },
+    /// Half of the seed for randomness.
+    SetSeed { half: usize, words: [usize; 2] },
+    Rmdir { path_len: usize },
     /// A capability to the path (`path_len` bytes of the buffer), inside
     /// the caller's scope.
     Grant {
@@ -77,6 +80,8 @@ impl Encode for StorageRequest {
             Mkdir { path_len } => [op::MKDIR, path_len, 0, 0],
             SetLog => [op::SET_LOG, 0, 0, 0],
             SetKey { half, words } => [op::SET_KEY, half, words[0], words[1]],
+            SetSeed { half, words } => [op::SET_SEED, half, words[0], words[1]],
+            Rmdir { path_len } => [op::RMDIR, path_len, 0, 0],
             Grant { path_len, write } => [op::GRANT, path_len, usize::from(write), 0],
             Release => [op::RELEASE, 0, 0, 0],
         }
@@ -99,6 +104,8 @@ impl Decode for StorageRequest {
             op::MKDIR => Mkdir { path_len: w[1] },
             op::SET_LOG => SetLog,
             op::SET_KEY => SetKey { half: w[1], words: [w[2], w[3]] },
+            op::SET_SEED => SetSeed { half: w[1], words: [w[2], w[3]] },
+            op::RMDIR => Rmdir { path_len: w[1] },
             op::GRANT => Grant {
                 path_len: w[1],
                 write: w[2] != 0,
diff --git a/crates/servers/storage-server/src/server.rs b/crates/servers/storage-server/src/server.rs
index d081533..d549e75 100644
--- a/crates/servers/storage-server/src/server.rs
+++ b/crates/servers/storage-server/src/server.rs
@@ -50,9 +50,11 @@ pub struct StorageServer<F: FileSystem, H: Host> {
     clients: [Option<Client>; MAX_CLIENTS],
     owners: [Option<Owner>; MAX_HANDLES],
     log: Option<CapSlot>,
-    /// The master key's halves, from the gatekeeper through init: what the
-    /// disk's encryption will be keyed with.
+    /// The master key's and the seed's halves, from the gatekeeper through
+    /// init; handed to the file system (and forgotten here) once all in.
     key: [Option<[usize; 2]>; 2],
+    seed: [Option<[usize; 2]>; 2],
+    unlocked: bool,
 }
 
 impl<F: FileSystem, H: Host> StorageServer<F, H> {
@@ -65,6 +67,8 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
             owners: [None; MAX_HANDLES],
             log: None,
             key: [None; 2],
+            seed: [None; 2],
+            unlocked: false,
         }
     }
 
@@ -88,20 +92,29 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
     }
 
     /// Only the unbadged holder (init), each half only once: nobody can
-    /// replace the key later.
-    fn set_key(&mut self, badge: usize, half: usize, words: [usize; 2]) -> StorageResponse {
-        match (badge, self.key.get_mut(half)) {
-            (0, Some(slot @ None)) => {
-                *slot = Some(words);
-                StorageResponse::Ok
-            }
-            _ => StorageResponse::Error,
+    /// replace the key or the seed later.
+    fn set_half(&mut self, badge: usize, seed: bool, half: usize, words: [usize; 2]) -> StorageResponse {
+        let halves = if seed { &mut self.seed } else { &mut self.key };
+        match (badge, self.unlocked, halves.get_mut(half)) {
+            (0, false, Some(slot @ None)) => *slot = Some(words),
+            _ => return StorageResponse::Error,
         }
+        if let ([Some(k0), Some(k1)], [Some(s0), Some(s1)]) = (self.key, self.seed) {
+            let bytes = |w: [usize; 4]| -> [u8; 32] { core::array::from_fn(|i| w[i / 8].to_le_bytes()[i % 8]) };
+            let (mut master, mut seed) = (bytes([k0[0], k0[1], k1[0], k1[1]]), bytes([s0[0], s0[1], s1[0], s1[1]]));
+            self.fs.unlock(&master, &seed);
+            master.fill(0);
+            seed.fill(0);
+            self.key = [None; 2];
+            self.seed = [None; 2];
+            self.unlocked = true;
+        }
+        StorageResponse::Ok
     }
 
-    /// Whether the whole master key has arrived.
+    /// Whether the encrypted areas are open: the key and seed are in.
     pub fn unlocked(&self) -> bool {
-        self.key.iter().all(Option::is_some)
+        self.unlocked
     }
 
     pub fn filesystem(&self) -> &F {
@@ -225,7 +238,7 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
             Write { handle, .. } => self
                 .owner(handle)
                 .is_some_and(|o| o.badge == badge && o.write),
-            Create { .. } | Delete { .. } | Mkdir { .. } => scope.write,
+            Create { .. } | Delete { .. } | Mkdir { .. } | Rmdir { .. } => scope.write,
             _ => true,
         };
         if !allowed {
@@ -233,7 +246,7 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
         }
         let mutates = matches!(
             request,
-            Write { .. } | Create { .. } | Delete { .. } | Mkdir { .. }
+            Write { .. } | Create { .. } | Delete { .. } | Mkdir { .. } | Rmdir { .. }
         );
         if mutates && !self.fs.writable() {
             return (R::ReadOnly, None);
@@ -263,6 +276,7 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
             | Create { path_len }
             | Delete { path_len }
             | Mkdir { path_len }
+            | Rmdir { path_len }
             | ListDir { path_len } => Some(path_len),
             _ => None,
         };
@@ -286,7 +300,7 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
             None => R::NotFound,
         };
         let response = match request {
-            Attach | SetLog | SetKey { .. } | Release => R::Error,
+            Attach | SetLog | SetKey { .. } | SetSeed { .. } | Release => R::Error,
             Grant { path_len, write } => {
                 let narrower = scope.narrow(&buf[sent(path_len)], write);
                 return match narrower.and_then(|s| grants.add(badge, s, |b| host.mint(b))) {
@@ -353,6 +367,13 @@ impl<F: FileSystem, H: Host> StorageServer<F, H> {
                     R::Error
                 }
             }
+            Rmdir { .. } => {
+                if fs.rmdir(path) {
+                    R::Ok
+                } else {
+                    R::Error
+                }
+            }
         };
         (response, None)
     }
@@ -389,7 +410,8 @@ impl<F: FileSystem, H: Host> Server for StorageServer<F, H> {
     ) -> ([usize; 4], Option<Give>) {
         match StorageRequest::decode(words) {
             Some(StorageRequest::SetLog) => (self.set_log(badge, cap).encode(), None),
-            Some(StorageRequest::SetKey { half, words }) => (self.set_key(badge, half, words).encode(), None),
+            Some(StorageRequest::SetKey { half, words }) => (self.set_half(badge, false, half, words).encode(), None),
+            Some(StorageRequest::SetSeed { half, words }) => (self.set_half(badge, true, half, words).encode(), None),
             // A badge storage never issued, or one it has taken back.
             Some(request) => match self.grants.scope(badge) {
                 None => (StorageResponse::Denied.encode(), None),
diff --git a/crates/servers/storage-server/src/tests/protocol.rs b/crates/servers/storage-server/src/tests/protocol.rs
index 3c08618..b669a20 100644
--- a/crates/servers/storage-server/src/tests/protocol.rs
+++ b/crates/servers/storage-server/src/tests/protocol.rs
@@ -26,6 +26,8 @@ fn every_request_roundtrips() {
         },
         StorageRequest::Release,
         StorageRequest::SetKey { half: 1, words: [7, 9] },
+        StorageRequest::SetSeed { half: 0, words: [1, 2] },
+        StorageRequest::Rmdir { path_len: 3 },
     ] {
         assert_eq!(StorageRequest::decode(req.encode()), Some(req));
     }
diff --git a/crates/servers/storage-server/src/tests/server.rs b/crates/servers/storage-server/src/tests/server.rs
index ea436c5..ef227b6 100644
--- a/crates/servers/storage-server/src/tests/server.rs
+++ b/crates/servers/storage-server/src/tests/server.rs
@@ -474,14 +474,19 @@ fn the_unbadged_holder_cannot_be_released() {
 }
 
 #[test]
-fn only_init_sets_the_key_and_only_once() {
+fn only_init_unlocks_and_only_once() {
     let mut s = server();
-    let set = |s: &mut Srv, badge, half| call(s, badge, StorageRequest::SetKey { half, words: [1, 2] }).0;
-    assert_eq!(set(&mut s, 5, 0), StorageResponse::Error, "a client cannot");
-    assert_eq!(set(&mut s, 0, 0), StorageResponse::Ok);
-    assert!(!s.unlocked());
-    assert_eq!(set(&mut s, 0, 0), StorageResponse::Error, "nor can it be replaced");
-    assert_eq!(set(&mut s, 0, 2), StorageResponse::Error, "two halves only");
-    assert_eq!(set(&mut s, 0, 1), StorageResponse::Ok);
+    let set = |s: &mut Srv, badge, req| call(s, badge, req).0;
+    let key = |half| StorageRequest::SetKey { half, words: [1, 2] };
+    let seed = |half| StorageRequest::SetSeed { half, words: [3, 4] };
+    assert_eq!(set(&mut s, 5, key(0)), StorageResponse::Error, "a client cannot");
+    assert_eq!(set(&mut s, 0, key(0)), StorageResponse::Ok);
+    assert_eq!(set(&mut s, 0, key(0)), StorageResponse::Error, "nor can a half be replaced");
+    assert_eq!(set(&mut s, 0, key(2)), StorageResponse::Error, "two halves only");
+    assert_eq!(set(&mut s, 0, key(1)), StorageResponse::Ok);
+    assert_eq!(set(&mut s, 0, seed(0)), StorageResponse::Ok);
+    assert!(!s.unlocked(), "not without the whole seed");
+    assert_eq!(set(&mut s, 0, seed(1)), StorageResponse::Ok);
     assert!(s.unlocked());
+    assert_eq!(set(&mut s, 0, key(0)), StorageResponse::Error, "once unlocked, never again");
 }
diff --git a/crates/tools/app-image/src/main.rs b/crates/tools/app-image/src/main.rs
index 283c5ae..ea4ecd9 100644
--- a/crates/tools/app-image/src/main.rs
+++ b/crates/tools/app-image/src/main.rs
@@ -2,8 +2,9 @@
 //! the same strict parser the permission manager uses:
 //!
 //!   app-image install <root> <manifest.toml> <binary>
-//!       an installed, pre-approved app: /apps/<id>/, its decision granting
-//!       everything it asks for, and /data/<id>/ if that includes storage
+//!       an installed, pre-approved app: /apps/<id>/, and (under factory/,
+//!       which init seeds the encrypted areas from) its decision granting
+//!       everything it asks for, and data/<id>/ if that includes storage
 //!   app-image stage <folder> <manifest.toml> <binary>
 //!       an app folder the owner can install later (`install <folder>`)
 
@@ -36,11 +37,11 @@ fn install(root: &Path, manifest: &Path, binary: &Path) -> Result<(), String> {
     };
     let mut out = [0u8; MAX_DECISION_TEXT];
     let n = decision.write(&mut out);
-    let decisions = root.join("system/permissions");
+    let decisions = root.join("factory/system/permissions");
     fs::create_dir_all(&decisions).map_err(|e| e.to_string())?;
     fs::write(decisions.join(m.id.as_str()), &out[..n]).map_err(|e| e.to_string())?;
     if decision.granted.contains(Capability::Storage) {
-        fs::create_dir_all(root.join("data").join(m.id.as_str())).map_err(|e| e.to_string())?;
+        fs::create_dir_all(root.join("factory/data").join(m.id.as_str())).map_err(|e| e.to_string())?;
     }
     Ok(())
 }
diff --git a/crates/types/src/gatekeeper.rs b/crates/types/src/gatekeeper.rs
index 7430140..425410c 100644
--- a/crates/types/src/gatekeeper.rs
+++ b/crates/types/src/gatekeeper.rs
@@ -1,11 +1,15 @@
 //! Init and the gatekeeper: after handing it the keystore and randomness
 //! (device setup calls), init calls `UNLOCK`, which returns once the owner
-//! is authenticated (`OK`) or the gatekeeper cannot go on (`FAILED`); then
-//! `KEY`, whose reply is the 32-byte master key in its four words. The
-//! gatekeeper then exits. Only the unbadged holder (init) is answered.
+//! is authenticated (`OK`, word 1 non-zero if the master key is new: a
+//! fresh device or one just wiped) or the gatekeeper cannot go on
+//! (`FAILED`); then `KEY`, whose reply is the 32-byte master key in its four
+//! words, and `SEED`, 32 fresh random bytes from the hardware for storage's
+//! randomness this boot. The gatekeeper then exits. Only the unbadged
+//! holder (init) is answered.
 
 pub const UNLOCK: usize = 1;
 pub const KEY: usize = 2;
+pub const SEED: usize = 3;
 
 pub mod reply {
     pub const OK: usize = 0;
diff --git a/crates/types/src/storage.rs b/crates/types/src/storage.rs
index 6875d15..7f661fe 100644
--- a/crates/types/src/storage.rs
+++ b/crates/types/src/storage.rs
@@ -36,6 +36,11 @@ pub mod op {
     /// Half the master key (word 1: which half, words 2..4: it), from the
     /// unbadged holder (init) only, each half once.
     pub const SET_KEY: usize = 13;
+    /// Half the seed for storage's randomness this boot, as `SET_KEY`. The
+    /// encrypted areas open once the whole key and seed are in.
+    pub const SET_SEED: usize = 14;
+    /// Removes the (empty) directory at the path in the buffer.
+    pub const RMDIR: usize = 15;
 }
 
 /// Reply tags (word 0).
diff --git a/docs/apps.md b/docs/apps.md
index 86bbdfd..6dce91e 100644
--- a/docs/apps.md
+++ b/docs/apps.md
@@ -31,11 +31,13 @@ declares `display`. Nothing gets anything "just in case".
 ## Disk layout
 
 ```
-/home/                 the owner's files; the shell's `/`
+/home/                 the owner's files; the shell's `/`          (encrypted)
 /apps/<id>/            an installed app: manifest.toml and its binary
-/data/<id>/            the app's private folder (its `storage` capability)
-/system/permissions/   the owner's decisions, one file per app id
+/data/<id>/            the app's private folder (its `storage`)    (encrypted, its own key)
+/system/permissions/   the owner's decisions, one file per app id  (encrypted)
 /bin/                  system servers and the shell (init starts these)
+/factory/              plaintext starter content the encrypted areas are
+                       seeded from with a new master key
 ```
 
 Only the permission manager reaches `/apps`, `/data` and `/system`. The
@@ -89,8 +91,9 @@ granted = ["display"]
 ```
 
 Written by the permission manager when the owner decides; apps on the
-system image ship with their decisions already recorded (pre-approved by
-whoever built the image). Changing one later is the owner's call, through
+system image ship with their decisions already recorded under
+`factory/system/` (pre-approved by whoever built the image), and init
+seeds them into the encrypted `system/` on a fresh setup. Changing one later is the owner's call, through
 the permission manager.
 
 ## Permission manager
diff --git a/docs/ipc.md b/docs/ipc.md
index 84da8d3..02f9ae5 100644
--- a/docs/ipc.md
+++ b/docs/ipc.md
@@ -97,8 +97,14 @@ gatekeeper (`types::gatekeeper`), handing it only the terminal, the keystore
 (a small disk of its own, told from the data disk by its size) and the
 virtio-rng device. Init calls `UNLOCK`, which returns once the owner is in,
 then `KEY`, whose reply is the master key; init passes it to storage
-(`SET_KEY`, from the unbadged holder only, each half once) and only then
-starts the permission manager and the desktop. If the gatekeeper cannot
+(`SET_KEY`, from the unbadged holder only, each half once), and a fresh
+32-byte seed (`SEED` → `SET_SEED`) for storage's randomness this boot.
+Storage's encrypted areas (`home/`, `system/`, each app's `data/<id>/`;
+crate `filecrypt`, layer `storage_server::encrypted`) open once both are
+in. With a new key (a fresh device, or one just wiped: `UNLOCK`'s word 1)
+init empties those areas and seeds them from the plaintext `factory/`;
+an area that is missing is seeded too. Only then does init start the
+permission manager and the desktop. If the gatekeeper cannot
 unlock, init stops there. The gatekeeper exits, and its capabilities go
 with it.
 
diff --git a/scripts/make-disk-image.sh b/scripts/make-disk-image.sh
index fcc9c59..d6aba99 100755
--- a/scripts/make-disk-image.sh
+++ b/scripts/make-disk-image.sh
@@ -33,11 +33,13 @@ app() {
 staged() {
     local crate="$1" folder="$2"
     if [ -f "${BUILD_DIR}/${crate}" ]; then
-        "${APP_IMAGE[@]}" stage "${ROOT}/home/${folder}" "crates/apps/${crate}/manifest.toml" "${BUILD_DIR}/${crate}"
+        "${APP_IMAGE[@]}" stage "${ROOT}/factory/home/${folder}" "crates/apps/${crate}/manifest.toml" "${BUILD_DIR}/${crate}"
     fi
 }
 
-mkdir -p "${ROOT}/bin" "${ROOT}/apps" "${ROOT}/data" "${ROOT}/system/permissions" "${ROOT}/home"
+# home/, system/ and data/ are encrypted, so not made here: init seeds them
+# from factory/ (plaintext) once the gatekeeper has the key.
+mkdir -p "${ROOT}/bin" "${ROOT}/apps" "${ROOT}/factory/home" "${ROOT}/factory/system/permissions" "${ROOT}/factory/data"
 # System servers and the shell: init starts these.
 copy display-qemu       display
 copy input-qemu         input
@@ -53,8 +55,8 @@ app ls
 app sleep
 app snake
 staged counter inbox/counter
-# The owner's files.
-cp -r disk/home/. "${ROOT}/home/"
+# The owner's first files.
+cp -r disk/home/. "${ROOT}/factory/home/"
 # Only the test image: its presence makes init run the self-test.
 if [ -n "${SMPTEST:-}" ]; then
     copy smptest   smptest
diff --git a/scripts/test-qemu.sh b/scripts/test-qemu.sh
index 9312868..de7dafb 100755
--- a/scripts/test-qemu.sh
+++ b/scripts/test-qemu.sh
@@ -50,8 +50,8 @@ echo "test-qemu: first boot: passcode set up: $([ ${first_ok} -eq 1 ] && echo ok
 boot 9999 1234
 [ ${status} -eq 0 ] && status=$?
 second_ok=0
-grep -aq "the owner is in" "${LOG}" && second_ok=1
-echo "test-qemu: second boot: wrong passcode refused, right one unlocks: $([ ${second_ok} -eq 1 ] && echo ok || echo FAIL)"
+grep -aq "the owner is in" "${LOG}" && grep -aq "from the last boot reads back: ok" "${LOG}" && second_ok=1
+echo "test-qemu: second boot: wrong passcode refused, right one unlocks, sealed file kept: $([ ${second_ok} -eq 1 ] && echo ok || echo FAIL)"
 rm -f "${KEYS}" "${MON}"
 
 grep -a "smptest:\|spawntest:\|Hello\|SMPTEST" "${LOG}"
@@ -62,8 +62,12 @@ if command -v e2fsck >/dev/null && command -v debugfs >/dev/null; then
         echo "test-qemu: e2fsck rejects the disk:"; cat "${LOG}.fsck"; disk_ok=0
     elif [ "$(debugfs -R 'cat /selftest.txt' "${IMAGE}" 2>/dev/null)" != "written by k-os on ext4" ]; then
         echo "test-qemu: /selftest.txt is not on the disk"; disk_ok=0
+    elif debugfs -R 'cat /home/readme.txt' "${IMAGE}" 2>/dev/null | grep -aq "Welcome"; then
+        echo "test-qemu: /home/readme.txt is plaintext on the disk"; disk_ok=0
+    elif ! debugfs -R 'cat /home/readme.txt' "${IMAGE}" 2>/dev/null | head -c 8 | grep -aq "KOSFILE1"; then
+        echo "test-qemu: /home/readme.txt is not a sealed file"; disk_ok=0
     else
-        echo "test-qemu: e2fsck clean, file on disk"
+        echo "test-qemu: e2fsck clean, file on disk, home sealed"
     fi
     rm -f "${LOG}.fsck"
 fi