# Security Assumptions ⎊ Area ⎊ Resource 3

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## What is the Assumption of Security Assumptions?

Security assumptions define the conditions under which a cryptocurrency protocol or derivatives platform is considered safe from attack or exploitation. These assumptions often relate to the economic incentives of participants, such as assuming that a majority of validators will act honestly or that the cost of an attack exceeds the potential profit. The integrity of the system relies entirely on these underlying premises holding true.

## What is the Security of Security Assumptions?

In decentralized finance, security assumptions are critical for evaluating the robustness of a protocol's design. For example, a derivatives protocol might assume that oracles provide accurate price feeds or that liquidity providers will not collude to manipulate prices. When these assumptions fail, the protocol becomes vulnerable to exploits, leading to significant financial losses.

## What is the Protocol of Security Assumptions?

The design of a protocol's security model must explicitly state its assumptions to allow for proper risk assessment by users and auditors. Understanding these assumptions is essential for traders who interact with complex derivatives, as a breach of a core assumption can lead to unexpected liquidations or asset loss. This transparency allows for informed decision-making regarding capital deployment and ensures the long-term sustainability of the protocol.


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## [Cross-Chain Settlement Finality](https://term.greeks.live/term/cross-chain-settlement-finality/)

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