Risks & Risk Framework
As a cross-chain yield platform, below are the risks involved and how Unison tries to manage it.
Smart Contract Risk
To prevent smart contract risk, all Unison smart contracts will be audited before public launch and in future a bug bounty program will be launched to further ensure the highest level of security.
Third Party Protocol Risk
Unison generates yield by deploying assets on third-party protocols. To mitigate third party protocol risks Unison uses its own vetting process along with Exponential's risk framework.
Bridge Risk
While Unison’s strategies do not rely on bridge pools for capital deployment, they do use bridges for the transfer of assets. Although Unison’s exposure to these bridges is limited to the duration of the transaction, it is worth noting that there is a small risk of financial loss due to potential exploits during the transfer process. Unison uses bridges with highest level of trust.
Unison implements a panic mode to pause the transactions whenever there is a risk of exploit, withdrawing funds from exploited protocol and transferring it back to vault from strategy and removing all the allowances.
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