Mitigation Measures

At JAX Finance, ensuring the integrity and security of our smart contracts is of paramount importance. Our protocols are subjected to extensive testing and thorough audits by renowned third-party security entities. The objective of these audits is to uncover and rectify any potential vulnerabilities or flaws within our smart contract framework, guaranteeing the highest level of security for our users' assets and transactions.

We will share the comprehensive details of our audit reports with the community upon completion.

Insurance Fund (Forthcoming)

In an effort to safeguard against potential losses due to unforeseen events, we will designate a segment of our token reserves for a security module. Furthermore, we contribute 10% of the protocol's fees towards an Insurance Fund. This fund acts as a protective layer, compensating for any losses the protocol might incur. Should there be an occurrence of bad debt, the Insurance Fund will be the initial source tapped for covering losses. However, in the rare event that the Insurance Fund's resources are depleted, lenders might temporarily experience restrictions on withdrawing their assets.

Multi-Oracles Strategy

Initially, JAX Protocol has integrated Pyth as its principal oracle solution on the Taiko Blockchain. Nonetheless, we are dedicated to bolstering the security and reliability of our oracle infrastructure. In our pursuit of continual improvement, we plan to adopt a multi-oracle strategy by integrating various independent price oracles. This diversified approach minimizes our dependency on any single oracle source, thus fortifying the protocol against possible oracle failures or manipulations. By compiling data from multiple oracles, JAX Protocol aims to diminish the effects of distorted or tampered price feeds, maintaining the accuracy of asset valuations across the protocol.