10.5 Operational Risks

Team Execution

Risk:

Protocol development requires execution across multiple dimensions:

• Smart contract engineering (Solana/Anchor expertise)

• Frontend development (multi-platform SDK)

• Business development (platform partnerships)

• Marketing and community building

• Legal and compliance

Mitigation:

• Experienced core team (to be detailed in Team section)

• Advisors with relevant expertise

• Modular development (can hire specialists)

• Open-source community contributions

Residual Risk:

Team departure, execution delays, or strategic missteps could hamper growth or competitiveness.

Security Breaches

Risk:

Beyond smart contract vulnerabilities:

• Frontend compromises (phishing, XSS)

• Private key theft (team, treasury)

• Social engineering attacks

• DNS hijacking

Mitigation:

• Hardware wallet usage (cold storage)

• Multi-signature controls (5-of-9 for treasury)

• Security training for team

• Bug bounty for infrastructure

• Regular security audits (annual)

Residual Risk:

Sophisticated attackers may target off-chain infrastructure or social layer.