What it means
An attack that uses a bug or design flaw in a smart contract to take money from it.
Exploits are one of the main risks in DeFi, even in audited protocols. Lost funds are often not recovered.
How it works
Our Risk Disclosure explains the risks of third-party protocols.
Related terms
| Term | What it means |
|---|---|
| Audit | A review of a smart contract's code by an outside security firm, looking for bugs before and after launch. |
| Smart contract | A program that lives on a blockchain and runs exactly as written, holding and moving tokens by its own rules. |
| Rug pull | A scam where a project's creators take the money users deposited and disappear. |
This glossary explains terms in general. It isn't investment, tax or legal advice.