In a cascaded-replication topology, a replica is chained among three systems. The last system in the chain can be configured as a collection, MTree, or directory. If the last system is a collection-replication destination, it uses the same encryption keys and encrypted data as its source. If the last system is an MTree or directory-replication destination, it uses its own key, and the data is encrypted at its source. The encryption key for the destination at each link is used for encryption. Encryption for systems in the chain works the same as in a replication pair.