Security Measures

1. Audit Report

At Mage Protocol, we prioritize the safety and reliability of our smart contracts. Our protocols undergo rigorous testing and comprehensive audits conducted by reputable third-party security firms. These audits aim to identify and address any potential vulnerabilities or weaknesses in our smart contract code, ensuring the utmost security for our users' funds and transactions.

Smart contracts have been thoroughly audited by BlockSec, read full report here: https://github.com/blocksecteam/audit-reports/blob/main/solidity/blocksec_magefinance_v1.1-signed.pdf

1. Insurance Fund (Coming Soon)

To mitigate the risk of losses in the events of unforeseen circumstances, a portion of our token supply has been allocated to a security module. Additionally, we allocate 10% of protocol fees to an Insurance Fund, which serves as a safety net to cover any losses incurred by the protocol. In the rare event of bad debt, Mage's Insurance Fund is utilized first to cover losses. However, in the unlikely scenario of insufficient funds in the Insurance Fund, there may be limitations on lenders' ability to withdraw their assets temporarily.

1. Multi-Oracles Approach

Currently, Mage Protocol supports Pyth as the primary oracle solution on the Merlin Chain. However, we are committed to enhancing the security and reliability of our oracle infrastructure. As part of our future development plans, we will implement a multi-oracle approach, incorporating multiple independent price oracles to fetch asset prices. This approach reduces reliance on any single oracle, thereby enhancing the resilience of the protocol against oracle failures or manipulation. By aggregating data from multiple oracles, Mage Protocol aims to mitigate the impact of inaccurate or manipulated price feeds, ensuring the integrity of asset valuations within the protocol.