Smart Contract Risk
Smart contract risk is the risk that software used to operate a blockchain based application contains errors, vulnerabilities or behaves in an unintended way. Problems can arise from the code itself, its configuration or the way it interacts with other systems.
Why it matters to you
Smart contracts can automate important RWA functions such as transfers, issuance, redemption and investor restrictions. If that software fails or is exploited, the consequences can affect assets or transactions even when the underlying real world investment itself remains sound.
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