A random AES-256 key is created for the file.
When you encrypt a file, SyLock doesn't just encrypt the file with your password. Instead, it generates a mathematically random Data Encryption Key (DEK). This DEK is what actually encrypts your file using AES-256-GCM.
The DEK is then encrypted ("wrapped") twice:
This hybrid approach gives you the ultimate fallback. If you forget the file's password, the file isn't lost forever. You can use your Master Private Key (which is stored securely and wrapped by your Master Password) to unwrap the DEK and decrypt the file.
No backdoors. The master key is generated on your device and never leaves it. Only you hold the pieces.