Definition ∞ A deferred settlement flaw is a vulnerability in a system where the finalization of a transaction is delayed, creating an exploit window. This type of weakness arises when there is a time lag between the initiation of a transaction and its irreversible completion on the blockchain. During this interval, an attacker can manipulate conditions, such as asset prices or available liquidity, to their advantage. Such flaws can lead to financial losses for users expecting immediate and final execution.
Context ∞ Reports of deferred settlement flaws frequently surface in decentralized finance, particularly concerning protocols with complex multi-step transaction processes. The discussion often centers on the trade-offs between transaction speed, cost, and finality in blockchain design. Developers are continuously working to minimize these settlement windows and implement safeguards to prevent front-running or other timing-based attacks.
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