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On-Chain Finance

Smart Contract Risk

German: Smart-Contract-Risiko

The risk that deployed code behaves other than intended or is exploited, causing irreversible loss without any counterparty default.

Why people look this up

Risk officers needing a category that does not exist in traditional risk taxonomies.

Auf Deutsch

Smart-Contract-Risiko Das Risiko, dass veröffentlichter Code anders als beabsichtigt arbeitet oder ausgenutzt wird und dadurch unumkehrbare Verluste ohne jeden Kontrahentenausfall entstehen.

Looking for how this maps to its traditional-finance counterpart rather than a standalone definition? See the Term Bridge, which also flags where the obvious analogy is wrong.