# Security & Risk

Arcadia uses a multi layered security approach to protect users and the protocol.

1. All code is [audited](/security-and-risk/audits.md) by multiple parties and underwent a Sherlock auditing contest.
2. A [Risk Framework](/security-and-risk/risk.md) is developed with industry leading third parties and continuously monitored.
3. [Security breakers](/security-and-risk/circuit-breakers.md) are in place to protect against malicious actors.
4. User can opt-in for [Insurance](/security-and-risk/insurance.md) to protect their deposits.

For the formal risk model and protocol design rationale, see the [protocol whitepaper](https://github.com/arcadia-finance/whitepapers/blob/main/main.pdf).

**Disclaimer**: While we take extensive measures to ensure protocol security, users should always understand that no system is 100% immune to potential risks. We recommend users to read our audit reports, our documentations and risk measures.


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