I have tried to find information about the general security or privacy of Keyboard Maestro, but not finding what I'm looking for.
Does it store everything locally on the user's computer or is there communication between the user and Keyboard Maestro servers? If there is communication to your servers, how is it stored and encrypted?
I'm not @peternlewis but as far as I know, the only communication with the Keyboard Maestro servers is for checking for app updates.
Otherwise, all of Keyboard Maestro's information is stored locally on your computer, unless you choose to sync it, but even then it doesn't go to Keyboard Maestro's servers, it just uses whatever syncing service you are using.
Communication with our servers happens for weekly version checks, and for Remote triggers. Both of these happen over https.
Keyboard Maestro has a build in web server which may be enabled, and which allows communications to/from it, and between Keyboard Maestro instances (since as sending clipboards between Macs), but it is off by default.
If you use macro syncing, then your sync file is synced through whatever service you use (not through our servers, since we do not offer a file syncing service - we might one day but that is not how it currently works).