Encrypting your PIN using a microSD card provides extra protection against physical attacks on the Trezor Model T and Trezor Safe 5. When enabled, a randomly-generated secret is stored on the microSD card. When checking your PIN or using your PIN to unlock your Trezor, this secret is combined with the PIN to decrypt data stored on the device. Simply put, the device gets 'bound' to the microSD card, and cannot be unlocked without it until you intentionally disable the feature or factory-reset your device.
If you need to perform a factory reset, please consult the relevant guide:
If you are concerned about physical attacks, you can remove the SD card whenever the device is not in use and keep the two in separate locations. One without the other is worthless to an attacker, because the SD card secret is an entirely random value which carries no information about the seed or passphrase.
To enable this feature you will need trezorctl version 0.11.6 or later and a FAT32 formatted microSD card.
There are three commands related to SD protection:
The refresh command replaces the current SD card secret with a new one. This is useful if you inserted the SD card into a malware-infected computer and are worried that the secret stored on the card may have been compromised.
Congratulations! Your device is now bound to the secret on the microSD card. You will need insert the card into the device to use your PIN.