🔐Risks & Risk Mitigation

There are two major risks that the Nexus Network team foresees in the product adoption -

• Security concerns - The Nexus Network team takes security very carefully. It has built a minimal solution to reduce the security surface area -

  • The additions to the rollup bridge are minimal. They only add features for depositing to validators and claiming staking returns. The contracts have also been audited.

  • The flow of funds is non-custodial

  • Even if Nexus contracts get compromised, exploiters can not access any funds as funds are either in the bridge contract or staked on Ethereum

• Slashing risks - The Nexus team has taken all necessary measures to reduce slashing risks and is working with the leading slashing insurance providers

• Liquidity risks - Nexus Network allows rollups to set a customizable staking limit to allow for regular withdrawals. Also, optimistic liquidity bridges can provide liquidity to withdrawing users in the worst case scenario