Code Audit Mandate

Definition ∞ A code audit mandate is a compulsory requirement for software code, particularly smart contracts, to undergo a thorough security review by independent experts. This directive aims to identify vulnerabilities, logical errors, or security flaws before deployment. It serves as a critical measure for ensuring the integrity and safety of digital asset protocols.
Context ∞ The increasing frequency of exploits and financial losses in decentralized finance has intensified calls for a robust code audit mandate across the industry. While many projects voluntarily conduct audits, a regulatory push for standardized, mandatory reviews is gaining traction. This discussion highlights the ongoing tension between decentralization ideals and the practical necessity of user protection.