Security & Risks

At Autara, security is fundamental to every aspect of the protocol. Every feature is designed with a focus on robustness and resilience. We prioritize minimizing attack surfaces while enabling permissionless functionality.

Audits

Autara undergoes regular internal testing and external third-party audits to ensure contract integrity and adherence to best practices. Our smart contracts are thoroughly verified to reduce the risk of vulnerabilities, exploits, or unintended behaviors.

Oracle Risk

Autara implements an oracle-agnostic architecture with multiple safeguards to mitigate oracle-related risks. Curators may configure an optional oracle confidence interval, allowing prices to be bounded within realistic ranges. This protects markets from errant or manipulated data, which could otherwise trigger false liquidations or mispriced loans.

Counterparty Risk

Since Autara operates on permissionless pools, each market is independently configured and maintained by its creator. Users must understand who controls the pool and should evaluate the parameters before participating.

Bad Debt and Insurance Fund

In the event of extreme market volatility or delayed liquidations, collateral sold may not fully cover a borrower's outstanding debt.

To mitigate this, Autara allocates 25% of each liquidation penalty to a market-specific insurance fund. This fund acts as a backstop, absorbing shortfalls and helping protect depositors and lenders from systemic loss.