During the initial tour of your browser extension, you may notice a link to the above question. This can also be found in the advanced settings section of the browser protection in the extension.
Clicking on the phrase will start a mini-tour with further explanations, as seen below.
It is important to select "Keep Changes" in the pop up that appears when installing the extension as it ensures that the extension is able to properly protect you.
The protection is due in part to a proxy that we place to properly encrypt and secure your web traffic.
Don't worry, your internet use isn't being monitored by Paladin Shield.
This proxy is used to prevent malicious users from accessing your data as well as prevent access to harmful sites.