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.

Folks Finance Bug Bounties | ImmunefiImmunefi

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, denominated in USD, for each supported asset to ensure controlled exposure and prevent excessive risk concentration.