RISKS & SECURITY
Exploit (Smart Contract Exploit)
Definition
An exploit is an attack that takes advantage of vulnerabilities in smart contracts or protocols to steal funds, manipulate prices, or disrupt operations.
Example
Example
The 2022 Wormhole exploit used a signature verification bug to mint 120,000 ETH illegitimately, draining the bridge's reserves.
Risks to Consider
Risks
- Fund loss
- Protocol damage
- Market disruption