Risks

We make all that's in our hands to mitigate the risks but non prodcut on chain (and offchain) is risk free and SAFU is not the exception

1. Smart Contract Risks of the SAFU Protocol

While the SAFU Protocol strives to minimize risks by keeping the smart contract code as straightforward as possible and subjecting it to rigorous audits, users should still be aware that no system is entirely without risk. Smart contracts, by their nature, can contain unforeseen vulnerabilities that might be exploited, leading to potential financial losses. Despite best efforts in design and security, including thorough testing and multiple rounds of code review, the inherent complexity of smart contracts means there is always a residual risk that users must consider.

2. Smart Contract Risks of Counterparties

In addition to the SAFU Protocol's internal risks, users must also consider the risks associated with counterparties involved in the ecosystem. Both the deposited assets and the resstaked assets are exposed to smart contract risks of the undelrying platform which the users should take into consideration.

For insured asset holders, you are getting a recution on the counterparty risk of your depoisited asste but you are also accepting that the restaked asset risk that is provigin security (besides is non correlated...your "insurance" reliess on the solnvecy of this asset) . Viceversa works for restakers, which are exposed to their deposited asset and also to the asset they are securing (based on the insurance policy the entered).

Lastly, you are also exposed to the Restaking platforms such as EigenLayer, Symbiotic, Karak, Nektar, etc. You can check risk of respetive platforms on their documentation (i.gEigenLayer’s documentation)

Understanding these layers of risk is crucial for anyone participating in the SAFU ecosystem, as it highlights the importance of due diligence and informed decision-making when engaging with decentralized finance products.

3. Other Risks

In addition to specific Web3 threats, SAFU also acknowledges risks from broader cybersecurity issues such as frontend attacks, phishing, or targeted assaults against SAFU Labs or its users. While collaborating with cybersecurity experts helps mitigate these risks, they cannot be completely eradicated.