# General risks and safeguards 1. The dual liquidation strategy balances the risks associated with over-dependency on liquidators by ensuring all bad loans are timely liquidated independent of the network constraints. This critical feature mitigates adverse risks stemming from a sell-cascade event. 2. Whitelisted smart contracts: Access to Hashstack’s core functionality is limited to direct interaction from the user's wallet or through allowed smart contracts, mitigating the scope for bad players from discovering a vulnerability and exploiting it through smart contract automated actions. 3. Compartmentalised supply & borrow through minimum commitment periods improves Hashstack's ability to predict liquidity availability. 4. Looping & flash loans are not permitted. However, delegated contract interactions are permitted for allowlisted accounts and designated liquidators. 5. Tier 1 capital. Hashstack recognises that no amount of risk & security measures ensure a fool-proof system. For this reason, Hashstack will build a tier 1 capital of 15% of total deposits to absorb adverse risks. This capital will be built over a period of 18 months. 6. Insurance: A trusted insurance provider will insure all user-provided liquidity up to US $1,000,000. 7. Audits: Hashstack's contracts underwent one round of audit. Currently, a bug bounty is active. Two additional security audits will be performed on Hashstack's starknet contracts before the re-genesis version release. 8. Bridges: Hashstack relies on its internal relayer built atop Stargate to transfer assets between ETH L1 & Starknet L2. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hashstack.finance/risk/general-risks-and-safeguards.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.