What Is the Difference between a Time-Lock and a Contract Pause Function?

A time-lock imposes a delay on the execution of a proposed change or action, while a contract pause function immediately and completely halts a contract's core financial functions (like deposits, transfers, or liquidations). The time-lock is a governance security feature that forces deliberation.

The pause function is an emergency security feature, typically controlled by a highly trusted multisig, designed to stop an ongoing attack or prevent further loss until a fix can be implemented.