# 11.2 Smart Contract & Blockchain Risks

Smart contracts are foundational to Asset Avenue's operations. While they reduce human error and improve efficiency, they are susceptible to bugs, vulnerabilities, or malicious exploits.

**Mitigation Strategy:**

* **Formal Code Audits:** All smart contracts, especially those handling token minting, staking, and resale, are audited by independent security firms before deployment.
* **Bug Bounty Program:** Asset Avenue runs a structured bounty program to incentivize community-based vulnerability discovery.
* **Versioned Upgrades & Emergency Pauses:** Contracts include upgradable mechanisms and kill switches in case of critical failures, with governance control by the DAO.

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