Smart contract risk

In DeFi, a smart contract holds the deposited funds and pays them out according to its code.

What it means

A bug or flaw in that code can let an attacker drain the funds; audits find many issues but cannot rule out every bug.

What to watch

How new the contract is, whether and by whom it was audited, how much value it holds (TVL), and who can change the code.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.