Operational Risks

Operational Risks include potential challenges in custodial arrangements, counterparty reliability, and smart contract vulnerabilities. Parity mitigates custodial risks by using Fireblocks' cold storage and adopting off-exchange settlement solutions for centralized exchanges, ensuring assets remain secure. The pool-to-trader model in Jupiter Perps minimizes counterparty risk by reducing reliance on individual counterparties. Parity’s smart contracts have undergone multiple audits, including one by Quantstamp, to ensure a high level of security and reliability.