# Smart Contract

#### **Nebula’s Smart Contract Security and Risk Management**

Nebula’s smart contract infrastructure is built with **modularity** and **resilience** to defend against common vulnerabilities, including **re-entrancy attacks** and **flash loan exploits**. The platform leverages **formal verification methods** to validate the correctness of contract logic, minimizing risks of coding errors or unintended behavior.

Additionally, **circuit breaker mechanisms** are integrated to halt operations automatically when anomalies are detected, preventing potential exploits. Nebula’s **liquidation framework** utilizes a **Dutch auction model** for efficient asset recovery, ensuring **rapid collateral liquidation** during periods of market volatility, while safeguarding the stability of the lending ecosystem.
