# Security Measures

At Folks Finance, security is a top priority, ensuring users' funds are fully protected from potential threats. The protocol incorporates a robust range of security measures to maintain the platform's integrity and reliability.

**Key Security Measures**

**Smart Contract Audits:**

Folks Finance undergoes regular audits by leading security firms to identify and fix vulnerabilities in its smart contracts.

| Audit firm | Link                                                                                                                                                      |
| ---------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Ottersec   | <https://github.com/Folks-Finance/audits/blob/13f8d8307902e8ff7018fe9b6df0b5668c638863/OtterSec%20-%20Audit%20of%20XChain%20Lending%20-%20May%202024.pdf> |

#### Immunefi audit competition:

Folks Finance performed two Audit competitions on Immunefi:

| Amount    | Results                                                                             |
| --------- | ----------------------------------------------------------------------------------- |
| $ 100,000 | <https://immunefi.com/audit-competition/folksfinance-boost/leaderboard/>            |
| $ 25,000  | <https://immunefi.com/audit-competition/mitigation-audit-folksfinance/leaderboard/> |

**Bug Bounty Programs:**

The platform incentivizes the community to identify and report potential vulnerabilities through bug bounty programs. Folks Finance has stumped up $200,000 as a bounty for hackers who can identify vulnerabilities in the code.

{% embed url="<https://immunefi.com/bug-bounty/folksfinance/information/>" %}

**Rate Limits:**

* To minimize risk and limit potential losses, rate limits are imposed on the maximum amount that can be transferred within a given period.
* This mechanism helps prevent large-scale exploits and ensures controlled value transfer across the protocol.

#### Secure and Reliable Oracles

Folks Finance leverages decentralized oracle like Chainlink and Pyth Network to ensure accurate and tamper-resistant price feeds. These inputs are further validated by internal consistency and freshness checks before being utilized on-chain, mitigating the risk of price manipulation.

#### Asset-Specific Limits

Folks Finance set [Collateral Caps and Borrow Caps](https://docs.xapp.folks.finance/technical-details/parameters), denominated in USD, for each supported asset to ensure controlled exposure and prevent excessive risk concentration.