Security & Risks

Audits & Bug Bounty

Synthetix has a bug bounty program program administered by Immunefi with up to $100,000 in rewards.

Information related to audits can be found on the Synthetix V3 Developer Documentation.

Risks

While Synthetix is committed to taking every reasonable measure to mitigate or prevent risks for protocol users, there are various risks present for all DeFi applications, not only the Synthetix protocol and it's ecosystem.

The potential risks associated with providing liquidity and trading on Synthetix V3 include, but are not limited to:

1. Liquidity Provisioning Risks:

   • Skew or Poor Market Performance: Unbalanced skew, poor market performance, or abnormal trading behavior can increase debt levels or lower the performance of liquidity deposits.

   • Smart Contract Vulnerabilities: Potential for unexpected losses due to bugs or exploits in the protocol or assets accepted for liquidity.

   • Collateral De-peg: Risk of collateral losing its value, affecting the stability of the system.

2. Perpetual Futures Trading Risks:

   • Leverage Trading: High risk of capital loss due to the leveraged nature of trading.

   • Market Volatility: Can lead to sudden price movements and liquidations.

   • Frontrunning and MEV Attacks: Although mitigated, these can still impact trading outcomes.

3. USDx/sUSD Minting Risks:

   • Liquidation Risks: Users must monitor their collateralization ratios to avoid liquidation.

4. Blockchain Risks:

   • Various Risks: L1 or L2 networks where the Synthetix protocol, tokens, or products are deployed could face uptime, congestion, smart contract, reliability, transaction execution, abnormal fees, or other risks associated with the blockchain(s) that could result in losses.

5. Oracle Risks:

   • Oracle Risks: Downtime, inaccurate data, smart contract, manipulation attacks, or other risks associated with oracles that supply price feed or other important data could result in service interruptions, losses, or liquidations.

As always, it is advised to conduct thorough research and understand all risks fully before using any blockchain applications.