Security
Learn about the measures Balanced takes to keep its users safe.
Risks of using Balanced
Before you use Balanced, it’s a good idea to understand the risks:
Smart contract risk. Balanced smart contracts have been audited, but there’s always the possibility of a bug or vulnerability that compromises participants’ funds. It would not be possible to recover them.
Liquidation risk. If your collateralisation ratio drops below 118% (85% LTV), some of your collateral will be liquidated to reduce your risk. If you have less than $100 of debt, all your collateral will be liquidated.
Redemption risk. If you borrow from Balanced, your collateral can be used as a last resort to keep bnUSD at $1. If the price of bnUSD falls below $0.97 and the Stability Fund is empty, traders may choose to redeem bnUSD for borrower collateral. They’ll receive $0.97 of collateral and repay $0.995 of borrower debt for every bnUSD they redeem. Redemptions are only available via the Balanced Loans contract, and are spread across a group of borrowers to limit the impact.
Smart contract audits
The Balanced smart contracts have been audited by Hashlock, Coinspect, MoveBit, FYEO, and SlowMist:
- December 2024 | Hashlock MOVE (Sui) Audit (PDF, 4.5 MB)
- October 2024 | Coinspect Soroban (Stellar) Audit (PDF, 240 KB)
- September 2024 | Hashlock Rust (Solana) Audit (PDF, 5.3 MB)
- August 2024 | MoveBit MOVE (Sui) Audit (PDF, 326 KB)
- June 2024 | Hashlock Solidity (EVM) Audit (PDF, 7.2 MB)
- April 2023 | FYEO Audit (PDF, 1.9 MB)
- March 2021 | SlowMist Audit (PDF, 1.2 MB)
Balanced is transitioning to the SODAX tech stack, so it’s no longer responsible for smart contracts. SODAX audits are conducted on a regular basis, with the last round of audits completed in September 2025.
Withdrawal limits
To protect funds in case of an exploit, Balanced has withdrawal limits in place for collateral, the Stability Fund, and the exchange.
A limited percentage of each asset can be withdrawn from these smart contracts every 24 hours. The limits can be changed via governance at any time, but typically range from 8–15%. To view the current limits and how close Balanced is to them, check the Withdrawal Limits section on the Stats page.