Security and Audits

Security is foundational to K2. Before any code reaches mainnet, it goes through multiple independent layers of review. Once live, the protocol is actively monitored around the clock.

Audits

K2's smart contracts have been reviewed by two independent security firms:

• Halborn. A leading blockchain security firm specializing in smart contract audits.

• WatchPug. A security research team with deep expertise in DeFi protocol vulnerabilities.

In addition to external audits, K2 undergoes internal security reviews that combine manual code analysis with automated AI-assisted tooling to catch issues across every iteration of the codebase, not just at major milestones.

Ongoing Monitoring

Audits assess code at a point in time. Monitoring protects the protocol while it is live. K2 uses Hypernative for 24/7 on-chain monitoring. Hypernative watches for unusual activity, suspicious transaction patterns, and emerging threats in real-time, enabling the team to respond immediately if something looks wrong.

Quantitative and Development Security

Shapeshifter supports K2 on the quantitative and development side, helping ensure that the protocol's risk parameters and economic design are as robust as its code.

Our Position on Risk

No smart contract protocol can guarantee it is completely free of risk. Audits, monitoring, and reviews significantly reduce the likelihood of an exploit, but they do not eliminate it entirely. We encourage users to only supply funds they are comfortable with, stay informed about their positions, and monitor their health factor regularly.