OS + version: Mac OS and iOS
I have recently started using this program, it is awesome. But I am a little paranoid, so I did what was recommended and set a pin so it is encrypted. Then I backed up the diary file to the iCloud, and found it on my mac. Using a simple hex editor I was able to find all my text in the file, un-encrypted, in normal readable ASCII. So unless there is an option somewhere I didn't see, I don't believe that the diary files are encrypted, otherwise in a hex editor they would look like garbage.
Please let me know because I would feel safer if there is an option I am missing.