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5. Audit Smart Contracts Before Using DeFi

DeFi (Decentralized Finance) platforms offer high yields but also high risks. Many protocols are built on smart contracts, and if these contracts are flawed or malicious, your funds can vanish instantly. Rug pulls, flash loan attacks, and code exploits have wiped out billions in seconds. Before interacting with any DeFi project, verify if the smart contracts have been audited by reputable firms like CertiK, Hacken, or Trail of Bits. Even audited projects aren’t risk-free, but the chances of catastrophic failure drop significantly. Never trust anonymous teams or unaudited platforms with large sums. Audit transparency should be a non-negotiable standard.