Regulatory Uncertainty

Cybersecurity Threats

As with any web-based application, Defx is susceptible to cybersecurity threats such as hacks, phishing attacks, and other forms of cybercrime. Successful attacks could result in the loss of user funds and personal data.

Risk Management Strategies

Defx employs several strategies to manage and mitigate these risks:

• Comprehensive Smart Contract Audits: Periodic self as well as third-party audits to identify and rectify vulnerabilities.

• Regulatory Monitoring: Defx periodically audits regulatory developments to ensure compliance with relevant laws in the territories our exchange is available to operate in.

• Liquidity Incentives: Encouraging market makers to provide liquidity, thereby reducing the risk of significant price slippage.

• Reducing latency while hedging: With a combination of colocating DLE with the validator as well as centralised exchanges, and monitoring latency associated with hedging, the risk of DLE's drawdown is minimised.