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What Is ‘Smart Contract Risk’ and How Is It Audited?

The risk of financial loss from bugs or exploits in the code of a smart contract; mitigated by rigorous, independent security audits.
Greeks.Live15.11.25

What Is ‘Smart Contract Risk’ and How Is It Audited?

Smart contract risk is the potential for financial loss due to bugs, exploits, or unforeseen vulnerabilities in the underlying code of a decentralized application. For a DAO treasury, this risk is high as its funds are often locked in smart contracts for investment or governance.

Auditing involves a rigorous, independent review of the code by security experts to identify and fix vulnerabilities before deployment, significantly reducing the risk.

How Can an External Audit Reduce the Risk of Smart Contract Bugs?
What Is the Risk Associated with a Bug in an Immutable Smart Contract?
How Can Users Verify the Code of a Rebase Token’s Smart Contract?
How Does the Auditing Process for a Smart Contract on Bitcoin Differ from One on Ethereum?

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