A system and a method for providing a secure wireless ad-hoc network in a wireless communication system having at least two transceivers coupled by a wireless transmission link are disclosed. The method includes receiving a data transmission at a first transceiver from a second transceiver, wherein the data transmission identifies a source of a signal in the data transmission and the signal is identified by a signal envelope; detecting a deep fade in the data transmission, wherein the first and second transceivers are configured to sample the source of the signal in the data transmission; determining whether the received signal exceeds a predetermined threshold for deep fades, wherein the predetermined threshold is preset by the first and second transceivers; generating a bit-string corresponding to each of the transceivers based on channel fading information relating to the wireless transmission link; and, using the bit-string, generating a key.