Risk Parameters

A comprehensive risk analysis of AVSs should include risk parameters across the following categories:

  1. Technical Risks: Evaluating the robustness of the codebase, smart contract vulnerabilities, and any potential flaws in the cryptographic protocols used.

  2. Governance Risks: Analyzing the operational procedures and governance mechanisms for potential issues or inefficiencies and how they could impact Exocore’s long-term viability.

  3. Market Risks: Understanding the market dynamics and how they might affect the value of tokens within the Exocore ecosystem.

  4. Security Risks: Assessing the measures in place to prevent, detect, and respond to security incidents, including whether the crypto-economic security guarantees of the system have been met.

  5. Liquidity Risks: Ensuring there is sufficient restaked liquidity in the Exocore system to secure the network.

  6. Systemic Risks: Considering the dependencies Exocore might have on other blockchain systems (and vice

    versa). Also factoring the potential for cascading failures due to slashing.

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