LendifyLabLendifyLab
Security

Risk management is engineered, not assumed.

LendifyLab combines cryptoeconomic safeguards with continuous monitoring and an insurance backstop, so depositors stay protected through every market regime.

Defence in depth

Four layers of protection

Over-collateralization

Loans require collateral above 100% of value, with conservative LTV per asset.

Automated liquidation

Smart contracts continuously monitor positions and unwind risk before it reaches lenders.

Insurance pool

A protocol reserve covers shortfalls from extreme events or contract anomalies.

Bug bounty

Top-tier rewards for responsible disclosure of contract vulnerabilities.

Liquidation flow

How a position is protected

  1. STEP 1
    Health factor monitored
    Every block, the system computes each position's collateral / debt ratio.
  2. STEP 2
    Warning at 1.10
    Borrowers receive on-chain alerts when approaching the threshold.
  3. STEP 3
    Auction at < 1.00
    Collateral is partially auctioned to liquidators at a small discount.
  4. STEP 4
    Lender protected
    Debt is repaid in full; any residual collateral is returned to the borrower.
Architecture

Security mechanism overview

LendifyLab Security
Collateral
LTV 60-85%
Per-asset risk
Pyth oracles
Liquidation
HF < 1.0 trigger
5-10% bonus
Partial (50%)
Insurance
15% reserve
Bad debt cover
DAO governed
Monitoring
Every slot
Audits ×2
Bug bounty