DeFi Risks & Security

Understand vulnerabilities, assess protocols, and protect your DeFi investments

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Crypto Custody Solutions

Understanding DeFi Security

DeFi protocols manage billions in assets through code instead of intermediaries. While this enables permissionless finance, it introduces unique security risksβ€”from smart contract bugs to economic attacks that traditional finance never faces.

The DeFi Risk Landscape

πŸ’°$12+ Billion Lost in 2021-2023 - DeFi hacks and exploits continue despite growing security awareness

πŸ›Code is Law - Smart contract bugs can't be patched like traditional software; funds may be permanently lost

⚑New Attack Vectors - Flash loans enable attacks impossible in traditional finance

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Technical Risks

Smart contract vulnerabilities, oracle failures, bridge exploits

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Economic Risks

Flash loan attacks, MEV extraction, liquidation cascades

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Human Risks

Rug pulls, phishing, compromised private keys

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No FDIC Insurance
Unlike traditional banks, DeFi has no government-backed deposit insurance. Your funds' safety depends entirely on protocol security, smart contract code quality, and your own risk management practices.