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I'm currently using a shadowsocks client on my PC to connect to a remote shadowsocks proxy server using rc4-md5 encryption and wondering if it is safe to do so. Would the server intercept my data because the encryption is deemed unsafe? I'm worried about it as I often use some banking or other privacy related applications.

Thank you.

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Would the server intercept my data because the encryption is deemed unsafe?

I'm assuming that you mean with "server" the system where your shadowsocks proxy is running on. While RC4 is considered a broken algorithm it still takes a considerable amount of computing power and thus lots of money to actually break it in practice. Thus it is highly unlikely that somebody will take this route unless you are a very valuable target to hack (i.e. cost of attack vs. gain).

And even if you are a very valuable target it might just be easier and cheaper to capture the traffic leaving your proxy to the final target system which is no longer "protected" by RC4-MD5. Or if the attacker gets access to your system he can replace the shadowsocks binary with some other binary which seems to do the same but additionally forwards the decrypted traffic to some third party.

In summary: don't worry about RC4-MD5 in this case because there are probably far easier attacks against your setup.

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