User Risk Assessment

The DEX Trilemma presents unique challenges for users, shaping a landscape with varied potential risks:

These risks can be categorized into three zones as follows:

Red Zone: Crypto's Abyss - Risks of Irreversible Loss!

In the crypto "Red Zone," hidden dangers threaten permanent asset loss:

  1. Lost Keys, Locked Funds: Managing crypto assets with private keys carries the risk of permanent fund lock due to key loss or compromise.

  2. Inheritance Limbo: Unlike traditional banks, crypto lacks built-in inheritance systems, risking permanent inaccessibility to digital assets after the owner is gone.

  3. Smart Contract Vulnerabilities: Flaws in smart contracts governing transactions can be exploited by hackers, resulting in fund losses for investors.

  4. Bridge Breach: Bridges connecting blockchains are potential entry points for malicious actors, capable of draining assets.

  5. System Hijacking: Crypto governance vulnerability opens the door to "Governance Attacks," allowing bad actors to manipulate decisions, misuse funds, or dismantle the system.

  6. Unauthorized Admin Discretion: Even trusted administrators can betray users, leading to complete asset loss through fund manipulation.

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