What is Smart-contract risk?
The chance that a contract's code or admin keys take your funds, regardless of price.
Bugs, reentrancy, oracle manipulation and privileged admin keys can drain a protocol in minutes. These are not price risks and no forecast range covers them.
Check who can upgrade or pause a contract, and whether that key is a single wallet or a timelocked multisig. Where the risk sits, it usually sits there.
Related terms
- Smart contractDeFi
Code deployed to a blockchain that runs automatically when its conditions are met.
- Admin key / upgrade keySecurity
The privileged control that can upgrade, pause or drain a contract.
- Smart-contract auditSecurity
A paid review of contract code by a security firm; evidence of diligence, not a guarantee.
- Rug pullSecurity
A project that takes deposits and then removes the liquidity or dumps its own supply.