# Security & Risk

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

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