What kind of encryption are you planning on using? What I googled into was the SQLCipher solution. From the looks of it an encrypted database can be accessed by executing a sql query before opening the database. We provide support for executing SQL on database open, that you should be to use in order to set it up. Do note though, that we haven't tested this, behaviour.
What you need to do is configure the BackendConfiguration object you are passing in the context. Just look for the BackendConfiguration.ConnectionPool.InitSQL property. It is a list of strings that are executed in order when the database is opened.
I hope this proves to be helpful, do let us know should you face any trouble.
the Telerik team
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