# Security and Risks

## Table of Contents

1. [Risks](#risks)
2. [Lila Finance Risks](#lila-finance-risk)
3. [Underlying Yield Generating Protocol Risk](#underlying-yield-generating-protocol-risk)

### Risks

User funds are at risk through two vectors: 1. Lila Finance and 2. the underlying yield-generating protocol.&#x20;

#### Lila Finance Risk

Our Github Repository is open source for anyone to view: <https://github.com/Lila-Finance/protocol>.

We plan to get an audit in the coming weeks. Please visit this section again for the full reports.&#x20;

#### Underlying Yield Generating Protocol Risk

Since all our yield is generated through third-party protocols, users should be aware that exploits to those protocols may affect your funds. For example, if the AAVE USDC vault is exploited, user funds may be at risk, and Lila Finance cannot compensate users for that issue.&#x20;

Knowing this, the team does due diligence to integrate the highest quality protocols into Lila Finance. The Lila Finance team will also carefully monitor the activity of all integrated protocols and send updates via social media to position holders. If any event does arise, we will temporarily reduce the quick sell fee to 0% and allow users to pull their collateral from the underlying protocol and Lila Finance and back into their personal wallets.  We will also contact the underlying protocol's team on the users' behalf should any funds be stolen. Still, users must be aware that despite these precautions, funds in third-party protocols are out of Lila Finance's control.&#x20;


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