How Does a Smart Contract Audit Contribute to Mitigating Rug Pull Risk? ▴ Learn

How Does a Smart Contract Audit Contribute to Mitigating Rug Pull Risk?

A smart contract audit is a professional review of the project's underlying code by a third-party security firm. The auditors look for vulnerabilities, backdoors, and functions that could allow developers to drain funds or mint unlimited tokens.

A clean audit report, especially one verifying that the code does not contain a "withdrawal function" controlled by the developers, significantly increases investor confidence and reduces the technical risk of a rug pull.

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