In the space of crypto, especially in the Decentralised Finance (DeFi) space, users have to understand the risks of projects and smart contracts before venturing into DeFi. We call this DYOR (do your own research).
As part of Beli Finance's long-term commitment to security and building trust within the community, we have laid out the ways in which we attempt to mitigate risks and provide a seamless Autofarm experience on which our users can trust.
General DeFi Risks
DeFi risks encapsulate a wide range of risks such as impermanent loss to risks of falling for scams such as wallet draining, private key being stolen, et cetera. Hence, DeFi users have to be careful themselves and learn to educate themselves constantly in this space. You can find a guide to keeping your funds SAFU here.
Smart Contract Security & Risks
Smart contracts are an innovative way for cryptocurrencies to interact with one another and with dApps (decentralised applications). However, due to the complexities that come with smart contracts, certain smart contracts may be prone to hacks. We've mitigated this risk by equipping all smart contracts with 24hr time-locks.
Fun Fact: Most of our vaults are operated using only 1 contract (not creating new contracts for each vault), so new vaults are created using the same construction (but with different constructors; which are the parameters/inputs to the contract). Working according to this mechanism assures the following:
Vaults will be audited end-to-end
Shorten the time needed to implement new vaults
Focus on adding value other than the creation of smart contracts