Risk Categories
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
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
Market Risk
Price movements may occur during swap execution.- Mitigation: Stablecoin focus, user-configurable slippage protection
- Severity: Low
Liquidity Risk
Insufficient liquidity could impact large swaps.- Mitigation: Multi-DEX aggregator queries 5 exchanges in parallel, splits routes across pools
- Severity: Low
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
Operational Risk
Infrastructure failures or errors may occur.- Mitigation: Backend redundancy, on-chain transaction independence, manual recovery options
- Severity: Low
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
Comparison to Alternatives
| Aspect | Traditional Banks | Typical DeFi | TED Protocol |
|---|---|---|---|
| Custody | Bank-held | Varies by protocol | Self-custody |
| Counterparty Risk | Yes | Yes (LP, oracles) | Minimized |
| Censorship Resistance | None (seizure possible) | High | High |
| Operating Hours | Limited | 24/7 | 24/7 |
| Fee Transparency | Hidden fees | Varies | Upfront disclosure |
| Impermanent Loss | N/A | LP exposure | N/A |
| Oracle Dependency | N/A | High | Minimal |
User Responsibilities
Before Use
- Understand how blockchain and DeFi work
- Use hardware wallets for significant amounts
- Start with small test transactions
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
After Transactions
- Verify receipt by checking destination wallet balance
- Keep transaction hashes for records
- Report issues promptly
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
Getting Help
- General Questions: FAQ
- Technical Issues: Discord or X
- Security Concerns: security@tedprotocol.io