⚠️Risks

The Aurum Protocol offers decentralised access to liquidity but is not without risks. Robust risk management measures, including smart contract audits and governance frameworks, are in place to help mitigate risks. Below is an overview of key risks and mitigation efforts.

Smart Contract Risk

Smart contracts can contain software bugs or other vulnerabilities within the protocol code and the underlying reserve tokens. To mitigate these risks, Aurum’s code which is forked from aave is publicly available for audit and has undergone multiple external third-party professional audits.

Oracle Risk

Aurum relies on third-party oracles for price feeds and external data, such as redemption ratios for liquid staking tokens. This reliance introduces potential risks such as incorrect valuations if an oracle fails or is compromised. To reduce this risk, Aurum uses decentralised oracles like Chainlink, Pyth etc which provide tamper-resistant data feeds, greater reliability, and security measures.