Risk Overview

Our goal is not only to eliminate risk, but to make it transparent and systematically managed TED Protocol involves blockchain technology and decentralized finance (DeFi). Eliminating risk entirely is impossible in DeFi. Please understand the following risks before using the protocol.

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Risk Categories

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Smart Contract Risk

Code vulnerabilities could lead to loss of funds.

• Mitigation: Audited code, battle-tested design patterns, emergency pause functionality
• Severity: Medium
• Details: Smart Contract Risks

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Bridge Risk

Cross-chain transfers have historically been major exploit targets.

• Mitigation: No custom bridges—only proven protocols (Circle CCTP, LayerZero, Wormhole)
• Severity: Medium
• Details: Bridge Risks

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Market Risk

Price movements may occur during swap execution.

• Mitigation: Stablecoin focus, user-configurable slippage protection
• Severity: Low

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Liquidity Risk

Insufficient liquidity could impact large swaps.

• Mitigation: Multi-DEX aggregator queries 5 exchanges in parallel, splits routes across pools
• Severity: Low

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Regulatory Risk

Legal frameworks around crypto and stablecoins may change.

• Mitigation: Non-custodial design (users control funds, no accounts or KYC)
• Severity: Variable by jurisdiction

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Operational Risk

Infrastructure failures or errors may occur.

• Mitigation: Backend redundancy, on-chain transaction independence, manual recovery options
• Severity: Low

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Mitigations

TED Protocol implements multiple layers of protection:

• Smart Contracts: Audited standardized patterns including Diamond Pattern (EIP-2535) and ERC-4626 vaults
• Emergency Controls: Multi-sig pause functionality
• Bridge Integrations: Official SDKs and verified contract addresses only, no custom modifications
• Slippage Protection: Enforced at contract level for all swaps
• Transparency: All parameters visible before user signing

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Comparison to Alternatives

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User Responsibilities

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Before Use

• Understand how blockchain and DeFi work
• Use hardware wallets for significant amounts
• Start with small test transactions

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During Transactions

• Review all details: amounts, addresses, fees
• Set appropriate slippage (don’t set excessively high)
• Confirm correct network
• Don’t close browser during cross-chain transfers

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After Transactions

• Verify receipt by checking destination wallet balance
• Keep transaction hashes for records
• Report issues promptly

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No Guarantees

TED Protocol provides software on an “as is” basis:

• No guarantee of continuous availability
• No guarantee of specific execution prices
• No protection from all risks
• No guarantee of future performance

Users are responsible for their own financial decisions and should only use funds they can afford to lose.

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Getting Help

• General Questions: FAQ
• Technical Issues: Discord or X
• Security Concerns: [email protected]