Stablecoins, RWA & Tokenization

What is smart contract risk in tokenized assets?

Smart contract risk is the chance that a coding flaw, exploit, or unintended behavior in the program governing a tokenized asset causes loss or malfunction. Because the contract runs automatically, a bug can be triggered before anyone intervenes. For example, a vulnerability in a token's transfer logic could let an attacker drain holdings or freeze redemptions. Audits, formal reviews, and time in production reduce but never fully remove this risk. Reading how a token's contract was built and reviewed is part of assessing any tokenized asset.