Definition ∞ A business logic error represents a flaw in the underlying rules or operational processes encoded within a smart contract or application, leading to unintended and often exploitable behavior. Unlike syntax errors, these flaws appear when the code correctly executes but produces an outcome contrary to the system’s design or economic intent. Such errors can permit unauthorized actions or financial manipulation. They are particularly difficult to detect through automated testing alone.
Context ∞ In crypto news, business logic errors frequently surface in reports of exploits where attackers manipulate protocol rules for personal gain, such as draining liquidity pools or minting excessive tokens. These incidents underscore the necessity of comprehensive security audits that examine not just code integrity but also the economic and operational assumptions behind a decentralized application. Preventing these errors is critical for maintaining trust and financial stability in digital asset systems.
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