> For the complete documentation index, see [llms.txt](https://docs.veda.tech/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.veda.tech/security-and-risk-controls.md).

# Security & Risk Controls

## Risks

Interacting with DeFi inherently involves risk, which broadly falls into two categories:

**Smart Contract Risk:** The possibility of financial loss from coding errors or unintended consequences within the contracts that power DeFi protocols.

**Economic Risk:** The economic uncertainty related to liquidity, protocol mechanics, market movements, strategy effectiveness, and asset volatility.

Veda vaults take a very specific approach to mitigating the risks for its clients using best-practices in smart contract development and DeFi curation.