Risk and Audits
Risks entail economic and security problems, like smart contract, oracle and liquidation risks. Security audits are professional assessments on whether the code are safe and correct.

Risks

Smart Contract Risks

The protocol will be interacting with a number of smart contracts, all of which impose risks. This can be both known and unknown risks that could result in the failure or vulnerability on the smart contracts which could result in assets being locked or lost forever.

Oracle Risks

Liquidations depend on a live, accurate price feed from oracles. Oracle downtime, incorrect prices, or manipulation can cause wrongful liquidations. We have fallback systems, safety switches, and emergency notification systems in place to mitigate this risk.

Liquidation Risks

This occurs when a user becomes undercollateralized and liquidatable but there is insufficient assets to pay back lenders in full. We do not anticipate this to be a common occurrence due to NEAR's speed and the presence of 3rd party liquidator bots who can liquidate positions efficiently.

Audits

Bastion's lockdrop contracts have been reviewed by top auditors. Please find the reports from Quantstamp (here) and Sentnl (here).
Bastion is primarily a fork of Compound - an EVM codebase which is extensively audited and battle-tested. Bastion is currently being audited. We will update this page with published audit reports once they have been completed.
However, security audits don't eliminate risks fully. Please do not deposit more assets than you can afford to lose.