> For the complete documentation index, see [llms.txt](https://docs.usx.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usx.capital/risks/core-protocol-risks.md). # Core Protocol Risks ### Smart contract risks USX relies on smart contracts for minting, redemption, collateral deployment, and yield distribution. Any vulnerability, bug, or exploit in the codebase could lead to loss of user funds or protocol failure. **Mitigation Measures:** * Independent audits from reputable blockchain security firms * Time-locked upgrades providing community review periods before implementation * Formal verification for critical contract components ### Oracle risk USX relies on price feeds for yield calculations, asset valuations, and redemption pricing. Oracle failures, manipulation, or delayed updates could result in incorrect yield distributions, mispriced redemptions, or protocol exploitation. **Mitigation Measures:** * Multiple oracle sources for cross-verify critical price data to reduce a single point of failure * Price deviation alerts that trigger when feeds show unusual variance from expected ranges * Circuit breakers for pausing operations when oracle data appears compromised or stale *For our full risk disclosure statement, please refer to* [*important legal disclosures and risk disclaimers*](https://scroll-zkp.gitbook.io/usx/resources/terms-of-service)*.* --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.usx.capital/risks/core-protocol-risks.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.