> 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 work to mitigate these risks using best practices in smart contract development and DeFi curation.