The Audits and Risk Control

Smart Contract Security

All core protocol logic is implemented through smart contracts that govern capital movement, yield accrual, settlement timing, and withdrawals.

Contracts are designed to:

  • enforce fixed deployment rules

  • remove discretionary control over user funds

  • ensure predictable capital behavior across cycles and epochs

  • clearly separate protocol enforcement from real-world execution

Independent Audits

Travessia’s smart contracts are undergoing independent third-party security audits.

Chain Defenders Audit:

Operational Risk and Real-World Execution

Travessia does not rely on on-chain activity alone to generate returns. Capital is deployed into real-world operations executed by professional counterparties.

Operational risk is managed through:

  • short deployment cycles

  • continuous capital rotation

  • disciplined settlement timelines

  • limited exposure windows per transaction

  • predefined return obligations to the protocol

  • robust legal agreements

The protocol does not warehouse inventory, extend long-term credit, or take directional exposure to commodity prices.

Hedging and Market Risk Management

To mitigate price volatility during execution, operators employ hedging strategies using established futures markets.

Hedging is used to:

  • protect margins between purchase and sale

  • reduce exposure to short-term price fluctuations

  • align execution outcomes with fixed settlement cycles

Hedging is not used to increase leverage or amplify returns.

Transparency Through Verified Data

Travessia is building a real-time transparency dashboard that provides visibility into underlying economic activity.

This dashboard will surface:

  • execution data supplied directly by Brazilian government sources

  • transaction attestations tied to real-world activity

  • aggregate volume, settlement, and throughput metrics

  • protocol-level performance indicators

All data displayed will be verified and sourced from official public records rather than self-reported metrics.

This system adds an additional layer of transparency and risk control by allowing users and investors to independently observe the economic activity supporting protocol returns.

Separation of Duties and Controls

Travessia is structured so that:

  • smart contracts control capital rules

  • operators execute real-world activity

  • no single party can unilaterally change system behavior

This separation reduces both technical and operational risk.

Known Risks and Disclosures

As with any system bridging on-chain and real-world activity, risks exist.

These include, but are not limited to:

  • smart contract vulnerabilities

  • operational execution risk

  • counterparty risk

  • regulatory uncertainty

  • liquidity variability during early stages

Travessia’s approach is to acknowledge these risks explicitly, structure the system to minimize them, and provide transparency so participants can make informed decisions.

Ongoing Improvements

Security and transparency are not static.

Travessia intends to:

  • publish ongoing audit updates

  • expand transparency dashboards as data availability increases

  • improve monitoring and alerting systems

  • iterate on risk controls as the protocol scales

These improvements are expected to evolve alongside product versions and additional vault deployments.

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