# 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](https://docs.fira.money/security-and-risk/risk-framework/interest-rate-risk)
* [Liquidation Risk](https://docs.fira.money/security-and-risk/risk-framework/liquidation-risk)
* [Bad Debt Risk](https://docs.fira.money/security-and-risk/risk-framework/bad-debt-risk)
* [Collateral Risk](https://docs.fira.money/security-and-risk/risk-framework/collateral-risk)
* [Liquidity Risk](https://docs.fira.money/security-and-risk/risk-framework/liquidity-risk)
* [Smart Contract Risk](https://docs.fira.money/security-and-risk/risk-framework/smart-contract-risk)
* [Risk Disclaimers](https://docs.fira.money/security-and-risk/risk-disclaimers)

## Security References

* [Security Overview](https://docs.fira.money/security-and-risk/security-overview)
* [Audits](https://docs.fira.money/security-and-risk/audits)
* [Bug Bounty](https://docs.fira.money/security-and-risk/bug-bounty)

## 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.