# Risk Mitigation

## Has TrueFi been audited?

Yes, please see TrueFi's technical audits [here](https://github.com/trusttoken/audits/tree/master/TrueFi).

## How does TrueFi mitigate risk?

TrueFi takes multiple measures to help protect lenders:

* [Staked TRU](https://docs.brila.finance/brila-protocol/brla-token/stake) provides default protection for lenders and governs the [loan approval process](https://docs.brila.finance/brila-protocol/other-concepts/legacy-dao-pools/loan-approval-process)
* Borrowers on TrueFi follow a thorough Know Your Business (“KYB”) workflow and credit review which incorporates both on-chain and off-chain data, such as company background, repayment history, operating & trading history, assets under management, and credit metrics. 
* TrueFi handles bad debt via a [Secure Asset Fund for Users (“SAFU”)](https://docs.brila.finance/brila-protocol/other-concepts/legacy-dao-pools/pool/safu-secure-asset-fund-for-users) smart contract.
* TrueFi lenders can also purchase [smart contract cover](https://app.nexusmutual.io/cover/buy/get-quote?address=0x7a9701453249e84fd0D5AfE5951e9cBe9ed2E90f) through Nexus Mutual to hedge risks when lending on TrueFi. Coverage is paid out at the discretion of mutual members but has covered technical exploits in the past. 

*This is not investment advice. Please Do Your Own Research.*