> 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.


---

# 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:

```
GET https://docs.veda.tech/security-and-risk-controls.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.