# 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.

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### 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.

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### 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.

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### 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.

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### 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.

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### 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**.

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**In short:** Elitra makes risks visible, measurable, and continuously managed — giving partners confidence that user funds are deployed safely.
