14.3 Technology and Security Vulnerabilities

ARX’s architecture depends on complex software systems and cryptographic technologies that may contain vulnerabilities or encounter performance issues.

Potential vulnerabilities

• Software bugs: Undetected errors in smart contracts, relay logic, or client software could result in unexpected behavior or loss of funds.

• Protocol attacks: Exploits targeting consensus, network routing, or encryption could disrupt operations or compromise privacy.

• Third-party dependencies: Reliance on infrastructure providers or external SDKs introduces indirect risks.

Mitigation

• Continuous security audits by independent firms.

• Bounty programs to incentivize white-hat disclosures.

• Distributed architecture to minimize single points of failure.

• Governance oversight for rapid security response and patch management.