🛡️Risk & Security Framework
At Elitra, security and risk management are built into the vault design. Our framework combines smart contract safeguards, economic risk checks, and continuous monitoring so partners know exactly where risks lie and how they are managed.
Smart Contract Security
This governs how vaults work at the technical level and ensures only safe, pre-approved actions are possible.
Minimal Surface Area: Vaults expose only essential functions (deposit/withdraw), limiting attack vectors.
Pre-Approved Actions: Every action is registered in advance and verified on-chain before execution.
Transaction Safeguards: Share lock periods and delayed withdrawals reduce flash loan and manipulation risks.
Continuous Monitoring: Both automated tools and third-party systems track upgrades, liquidity shifts, and suspicious activity.
Audits & Bug Bounties: All contracts undergo independent audits and participate in bug bounty programs.
Economic Security (Curation)
This layer governs how strategies and assets are selected, reducing risks beyond the code itself.
Dual Audit Process: Every strategy is reviewed internally and externally by independent specialists.
Economic Risk Analysis: Liquidity, peg stability, collateral quality, and liquidation stress tests are assessed.
Conservative Allocation Caps: Exposure limits are set by protocol maturity, code complexity, and security history.
Preference for Battle-Tested Protocols: We prioritize protocols with strong track records and high TVL.
Crisis Management: Clear playbooks exist for communication, mitigation, and recovery in case of incidents.
Scoring & Ratings
To make risk clear and consistent, every strategy is given:
A risk label (Very-Low → Very-High)
A score from 0–100
Critical weaknesses automatically flag a strategy as High Risk until remediated.
Risk Treatment
Reject strategies that score High/Very-High.
Mitigate with audits, insurance, or stricter limits.
Monitor medium risks with alerts and regular re-scoring.
Deploy low-risk strategies by default, but selectively include higher-risk opportunities in agreement with partners when the trade-off makes sense and safeguards are in place.
Example in Practice
A vault combining lending (Aave), liquidity provision (Uniswap), and a newer protocol (Morpho):
Aave ranks safest (mature audits, simple mechanics).
Uniswap LP is lower due to impermanent loss risks.
Morpho is strong but newer governance reduces its score.
Together, diversification keeps the vault in the Low Risk band.
In short: Elitra makes risks visible, measurable, and continuously managed — giving partners confidence that user funds are deployed safely.
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