Litevault is an online wallet service which uses in-browser cryptography to reduce the risk of the coin operator running with the funds. This same system is used by Blockchain.info - a well known online Bitcoin wallet (UNAFFILIATED WITH LITEVAULT).
When you login to LiteVault, your browser sends your identifier to our server,
we return an encrypted version of your wallet with the AES algorithm,
your browser then decrypts this using your password (which is never sent to the server)
to load your private keys used to sign transactions.
When you send Litecoins via LiteVault, we use the private keys in your browser memory to sign a transaction form your address, we then post that crafted transaction to our server as a hash which we cannot modify, we can only push the transaction out to the network.