# Smart Contract Risk 

<figure><img src="/files/DD0pIV6Hy5mbFvUrXUTX" alt=""><figcaption></figcaption></figure>

As in all DeFi products, there is a risk that the protocol could have a smart contract vulnerability or bug, potentially exposing some or all of its funds to hacking. To mitigate this risk, several security measures are in place:

* The smart contracts are **open source** and designed with **minimised complexity**, reducing potential attack vectors.
* The code has undergone two **thorough** **audits** conducted by [Nethermind](https://github.com/NethermindEth/PublicAuditReports/blob/main/NM0257-FINAL_CHI_PROTOCOL.pdf) and [ABDK](https://github.com/abdk-consulting/audits/blob/main/chi/ABDK_Chi_ChiProtocol_v_1_0.pdf), ensuring its security and reliability.
* Any critical changes to the protocol's smart contracts are **subjected to additional audits** before implementation, further safeguarding the protocol from potential vulnerabilities.

{% hint style="info" %}
More details about Chi's security measures can be found in the dedicated [Security](/chi-docs/resources/security.md) page. [ ](/chi-docs/resources/security.md)
{% endhint %}


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