Code Audit Gap

Definition ∞ A code audit gap refers to any portion of a smart contract’s codebase or an entire protocol that has not undergone a thorough, independent security review by qualified auditors. This omission represents a significant vulnerability, as unaudited code may contain undetected bugs, logical flaws, or security weaknesses that malicious actors could exploit. Such gaps substantially elevate operational and financial risk for users and the protocol itself.
Context ∞ Reports of code audit gaps frequently precede or follow major security incidents and exploits within the decentralized finance (DeFi) space, making it a critical factor in crypto news analysis. The absence of comprehensive audits often signals potential instability, prompting increased scrutiny from investors and users regarding a project’s long-term viability and security posture.