# Risks and Audits

## **Smart Contracts**

DeFindex is built on smart contracts. In the event of a hack, funds could be at risk.

## Underlying Protocols

Because DeFindex integrates with external DeFi protocols, vulnerabilities in those protocols may affect vault performance.

## Risk Mitigation

DeFindex minimizes exposure by routing most deposits and movements directly through integrated dApps, reducing reliance on its own contracts. In addition, Vault Managers and Emergency Managers can trigger a **rescue function**, which safely unwinds all funds from underlying strategies back to the vault — where only users can withdraw. This feature enables proactive risk management in collaboration with chain analysis tools.

## Audits

**Audit Report by OtterSec:** [View the report](https://github.com/paltalabs/defindex/blob/main/audits/2025_03_18_ottersec_defindex_audit.pdf)

For a detailed evaluation of DeFindex’s security and compliance, refer to the audit report conducted by [**OtterSec**](https://osec.io).


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