> ## Documentation Index
> Fetch the complete documentation index at: https://docs.infinifi.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk Assessment Framework

> How infiniFi evaluates and manages protocol risk

## infiniFi Risk Assessment Framework

This document outlines how infiniFi approaches risk assessment and management across its protocol operations.

## Risk Categories

### Smart Contract Risk

* All contracts are audited before deployment
* Time-locked governance for critical parameter changes
* Emergency pause functionality

### Market Risk

* Duration matching reduces liquidity mismatches
* Reserve requirements maintain withdrawal capabilities
* Diversification across multiple farm strategies

### Oracle Risk

* Multiple oracle sources where available
* Staleness checks on all price feeds
* Circuit breakers for extreme deviations

### Liquidity Risk

* Fractional reserve model maintains liquid reserves
* Redemption queue system for orderly withdrawals
* First-come-first-served queue during lock-up events

## Governance

liUSD holders participate in governance with voting power weighted by:

* Locked iUSD amount
* Unwinding period duration

<Card title="View Contracts" icon="file-contract" href="/dev-docs/contracts">
  See deployed governance contracts.
</Card>