# Risks

Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.\
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For details of contract operation please read the [Contracts](/general-resources/contracts.md) section.\
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A non-exhaustive list of some risks:\
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\- Smart contract risks\
\- Counterparty risks: The MLP pool is the counterparty to traders, if traders make a profit that comes from the value of the MLP pool\
\- Token risks: Bridged tokens may depend on the security of the bridge, pegged tokens have risks of depegging


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