# What Are the Security Risks Associated with Rebase Token Smart Contracts? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## What Are the Security Risks Associated with Rebase Token Smart Contracts?

Rebase token smart contracts are complex and can be vulnerable to a variety of security risks. These include re-entrancy attacks, integer overflow and underflow bugs, and oracle manipulation.

A successful attack on a rebase token's smart contract could allow an attacker to drain the token's liquidity pool, manipulate the rebase mechanism, or mint an infinite number of tokens. This could result in a complete loss of funds for investors.

- [What Is an Integer Overflow and How Does It Impact Token Balances?](https://learn.greeks.live/path/what-is-an-integer-overflow-and-how-does-it-impact-token-balances/)

- [What Is a “Re-Entrancy Attack” and Why Is It a Common Smart Contract Vulnerability?](https://learn.greeks.live/path/what-is-a-re-entrancy-attack-and-why-is-it-a-common-smart-contract-vulnerability/)

- [What Is the Safe Math Library and Why Is It Used?](https://learn.greeks.live/path/what-is-the-safe-math-library-and-why-is-it-used/)

- [What Specific Types of Vulnerabilities Are Common in Turing-Complete Smart Contracts but Absent in Non-Turing-Complete Ones?](https://learn.greeks.live/path/what-specific-types-of-vulnerabilities-are-common-in-turing-complete-smart-contracts-but-absent-in-non-turing-complete-ones/)

- [What Are the Most Common Security Vulnerabilities in Smart Contracts despite Blockchain Security?](https://learn.greeks.live/path/what-are-the-most-common-security-vulnerabilities-in-smart-contracts-despite-blockchain-security/)

- [Explain the Difference between an Overflow and an Underflow](https://learn.greeks.live/path/explain-the-difference-between-an-overflow-and-an-underflow/)

- [Can a Fork Lead to Security Vulnerabilities in a Cryptocurrency Network?](https://learn.greeks.live/path/can-a-fork-lead-to-security-vulnerabilities-in-a-cryptocurrency-network/)

- [What Tools Are Used to Detect Integer Overflow and Underflow Vulnerabilities?](https://learn.greeks.live/path/what-tools-are-used-to-detect-integer-overflow-and-underflow-vulnerabilities/)

## Glossar

### [Token Smart Contracts](https://learn.greeks.live/area/token-smart-contracts/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Contract ⎊ Token smart contracts are immutable, self-executing code deployed on a blockchain that programmatically define the creation, ownership, and transfer rules for a digital asset.

### [Security Risks](https://learn.greeks.live/area/security-risks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Vulnerability ⎊ Security risks in cryptocurrency and derivatives markets refer to potential weaknesses in smart contracts, network protocols, or external infrastructure that can be exploited by malicious actors.

### [Rebase](https://learn.greeks.live/area/rebase/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Mechanism ⎊ Rebase operations, within cryptocurrency and derivatives, represent a revision of the blockchain’s history, altering the base from which future blocks are built; this differs fundamentally from a hard fork, maintaining chain continuity while rewriting commit history.

### [Complete Loss of Funds](https://learn.greeks.live/area/complete-loss-of-funds/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Oblivion ⎊ The term "Complete Loss of Funds" within cryptocurrency, options trading, and financial derivatives signifies the irreversible depletion of an investor's capital, rendering any recovery improbable.

### [Rebase Token](https://learn.greeks.live/area/rebase-token/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Algorithm ⎊ Rebase tokens operate through a dynamic supply mechanism, adjusting the circulating token quantity based on a predetermined algorithmic function, often tied to price fluctuations or time-based schedules.

## Discover More

### [What Are the Risks Associated with Investing in Cryptocurrency?](https://learn.greeks.live/path/what-are-the-risks-associated-with-investing-in-cryptocurrency/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are the Risks Associated with Investing in Cryptocurrency?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Visualization-Abstract-Geometric-Structure-Optimizing-Liquidity-Provision-in-Decentralized-Exchanges.webp)

Cryptocurrency investing is high-risk due to price volatility, lack of regulation, and the potential for total loss from theft or fraud.

### [What Happens to My Investment If a Rebase Token's Smart Contract Is Exploited?](https://learn.greeks.live/path/what-happens-to-my-investment-if-a-rebase-tokens-smart-contract-is-exploited/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Happens to My Investment If a Rebase Token's Smart Contract Is Exploited?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Exchange-Mechanism-Structural-Integrity-Cross-Sectional-Derivative-Collateralization-Analysis.webp)

A smart contract exploit can lead to a complete loss of your investment, as an attacker could drain funds or crash the price.

### [How Are Smart Contracts Audited to Identify and Mitigate Security Risks?](https://learn.greeks.live/path/how-are-smart-contracts-audited-to-identify-and-mitigate-security-risks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Are Smart Contracts Audited to Identify and Mitigate Security Risks?](https://learn.greeks.live/wp-content/uploads/2025/10/Hinge-Mechanism-Aesthetics-in-Decentralized-Finance-Protocol-Module-Interoperability-Visualization.webp)

Auditors manually review smart contract code and use automated tools to find vulnerabilities, then provide a report for developers to fix the issues.

### [What Risks Are Introduced by the "Code Is Law" Nature of Immutable Smart Contracts?](https://learn.greeks.live/path/what-risks-are-introduced-by-the-code-is-law-nature-of-immutable-smart-contracts/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Risks Are Introduced by the "Code Is Law" Nature of Immutable Smart Contracts?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Structured-Financial-Instrument-Piercing-Reflective-Dualistic-Prismatic-Surface-Domain.webp)

Bugs or flaws in the code are permanently enforced, leading to irreversible financial loss and potential non-compliance.

### [Can a Utility Token Evolve into a Security Token over Time?](https://learn.greeks.live/path/can-a-utility-token-evolve-into-a-security-token-over-time/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Utility Token Evolve into a Security Token over Time?](https://learn.greeks.live/wp-content/uploads/2025/10/Hyperspeed-Digital-Asset-Propulsion-System-Modeling-Complex-Option-Hedging-Vector-Flux.webp)

Yes, if the network fails to decentralize or the token's primary value shifts to a speculative investment.

### [How Do Rebase Tokens Differ from Other Types of Cryptocurrencies?](https://learn.greeks.live/path/how-do-rebase-tokens-differ-from-other-types-of-cryptocurrencies/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Rebase Tokens Differ from Other Types of Cryptocurrencies?](https://learn.greeks.live/wp-content/uploads/2025/10/Secured-Kinetic-Energy-Transfer-Mechanism-Governing-Decentralized-Exchange-Liquidity-Pool-Volatility-Index.webp)

Rebase tokens have an elastic supply that changes with price, unlike the fixed supply of most other cryptocurrencies.

### [What Are the Risks Associated with an Underfunded Exchange Insurance Pool?](https://learn.greeks.live/path/what-are-the-risks-associated-with-an-underfunded-exchange-insurance-pool/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are the Risks Associated with an Underfunded Exchange Insurance Pool?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Intersection-of-Hardware-Wallet-Modules-Signaling-Decentralized-Exchange-Liquidity-Pools.webp)

Increases risk of socialized losses or ADL, which erodes trader confidence and threatens exchange solvency.

### [What Is the Concept of 'Liquid Staking' and Its Associated Risks?](https://learn.greeks.live/path/what-is-the-concept-of-liquid-staking-and-its-associated-risks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Concept of 'Liquid Staking' and Its Associated Risks?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Decentralized-Finance-Protocol-Mechanisms-Governing-Settlement-Layers-and-Smart-Contract-Oracles.webp)

Staking assets while receiving a tradeable token; risks include smart contract failure and token de-pegging.

### [What Is a 'Non-Fungible Token' (NFT) and How Does It Differ from a 'Security Token'?](https://learn.greeks.live/path/what-is-a-non-fungible-token-nft-and-how-does-it-differ-from-a-security-token/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a 'Non-Fungible Token' (NFT) and How Does It Differ from a 'Security Token'?](https://learn.greeks.live/wp-content/uploads/2025/10/Tokenized-Asset-Securitization-Architecture-with-Encapsulated-Settlement-Mechanism-for-DeFi-Protocols.webp)

NFTs are unique and indivisible; Security Tokens are fungible and represent financial rights in an asset.

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**Original URL:** https://learn.greeks.live/learn/what-are-the-security-risks-associated-with-rebase-token-smart-contracts/
