# Protocol Security Vulnerabilities ⎊ Area ⎊ Resource 3

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## What is the Security of Protocol Security Vulnerabilities?

Refers to the robustness and correctness of the underlying smart contract code and the associated off-chain infrastructure supporting the derivatives platform. Weaknesses here present direct threats to the custody of collateral and the integrity of trade settlement. Continuous auditing is a necessary prerequisite for high-value operations.

## What is the Exploit of Protocol Security Vulnerabilities?

A specific, successful attack vector that leverages a flaw in the protocol's logic to illicitly drain funds or manipulate contract states. Identifying potential attack surfaces, such as re-entrancy or arithmetic overflow, is a primary focus for pre-deployment analysis. Quant analysts must understand these vectors to model operational risk.

## What is the Code of Protocol Security Vulnerabilities?

The immutable set of instructions governing the derivative contract's lifecycle, including option exercise, margin calculation, and liquidation triggers. Errors in this logic can lead to incorrect pricing or unfair execution, creating arbitrage opportunities for malicious actors. Rigorous formal verification minimizes this class of failure.


---

## [Scenario Impact Assessment](https://term.greeks.live/definition/scenario-impact-assessment/)

## [Protocol Physics Impact](https://term.greeks.live/term/protocol-physics-impact/)

## [Risk per Trade](https://term.greeks.live/definition/risk-per-trade/)

---

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**Original URL:** https://term.greeks.live/area/protocol-security-vulnerabilities/resource/3/