# Risk Framework

As Decentralized finance (DeFi) is gaining more traction, the industry is posing some risks to operating cross-border through open protocols. Pawnfi bewares of security issues and has deployed root and branch risk management.

Besides agent-based audits, e.g. PeckShield, Pawnfi has been forming a risk assessment model, to provide empirical support against malicious patterns and extreme conditions in the protocol. In the meantime, Pawnfi introduces sophisticated risk parameters to ensure a higher level of protection for all users.

The following documentation will specify the potential risks emerging in the lending market, and how Pawnfi will address them correspondingly.


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