11.1 Technical Risks and Response Policies

There are always technical risks to smart contracts, wallets, and DApps components in Web3.

Potential Risks:

• Bugs and vulnerabilities in smart contracts

• Wallet hacks and unauthorized access

• Data integrity risks from off-chain integrations

Mitigation Strategies:

• Conduct external audits (Audit) of smart contracts

• Implement system updates in stages and make testing in a verification environment mandatory

• Emergency response operation system in case of major problems Develop emergency response operation system in case of major problems