1. http://keepass.info/help/base/security.html#secdesktop 2. http://arstechnica.com/security/2014/07/this-thumbdrive-hack... 3. http://keepass.info/help/base/security.html#secdictprotect
Because you're always just one burglary away from passwordocalypse?
My password database is stored on a USB key that I carry with me, with a regular copy made and securely stored.
Key file is stored on devices I use, in a directory restricted to my own access and on a drive which is encrypted. An encrypted copy is also stored on the USB key with the password database; this can be decrypted using a GPG, key stored on a yubikey and also carried; if a device can be trusted enough, this is how I move the key file around.
Access to the database requires 3 things rather than two. A long passphrase could be recorded by an observer, who could then take my USB key. The key file ensures that they still do not have all that they need.