# Risk Framework

Fira risk management is structured around six primary user-facing risk categories plus legal and operational disclaimers.

## Risk Categories

1. Interest rate risk
2. Liquidation risk
3. Bad debt risk
4. Collateral risk
5. Liquidity risk
6. Smart contract risk

## Mitigation Layers

* Multi-auditor security process
* Live bug bounty coverage
* Conservative collateral and liquidation parameters
* Oracle controls and fallback logic
* Governance-based parameter updates
* Progressive rollout strategy for new product surfaces

## Read By Category

* [Interest Rate Risk](/security-and-risk/risk-framework/interest-rate-risk.md)
* [Liquidation Risk](/security-and-risk/risk-framework/liquidation-risk.md)
* [Bad Debt Risk](/security-and-risk/risk-framework/bad-debt-risk.md)
* [Collateral Risk](/security-and-risk/risk-framework/collateral-risk.md)
* [Liquidity Risk](/security-and-risk/risk-framework/liquidity-risk.md)
* [Smart Contract Risk](/security-and-risk/risk-framework/smart-contract-risk.md)
* [Risk Disclaimers](/security-and-risk/risk-disclaimers.md)

## Security References

* [Security Overview](/security-and-risk/security-overview.md)
* [Audits](/security-and-risk/audits.md)
* [Bug Bounty](/security-and-risk/bug-bounty.md)

## Important

Risk cannot be eliminated in DeFi systems. This framework helps users assess tradeoffs and failure modes, but does not constitute financial, legal, or tax advice.


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