# Risks & Security

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## Audits

<table><thead><tr><th>Auditor</th><th>Version</th><th width="148.06640625">Date</th><th>Type</th><th>PDF</th></tr></thead><tbody><tr><td>Zellic</td><td>Pye V1</td><td>January 23, 2025</td><td>Security Review</td><td><a href="https://github.com/pyefi/security/blob/master/security_audits/zellic_january_2025_core_v1.pdf">Zellic Report</a></td></tr><tr><td>Sec3</td><td>Pye V1</td><td>March 19, 2025</td><td>Security Review</td><td><a href="https://github.com/pyefi/security/blob/master/security_audits/sec3_march_2025_core_v1.pdf">Sec3 Report</a></td></tr><tr><td>Neodyme</td><td>Pye V2</td><td>June 5, 2025</td><td>Security Review</td><td><a href="https://github.com/pyefi/security/blob/master/security_audits/neodyme_june_2025_core_v2.pdf">Neodyme Report</a></td></tr><tr><td>Sec3</td><td>Pye V2</td><td>November 2025</td><td>Security Review</td><td><a href="https://github.com/pyefi/security/blob/master/security_audits/sec3_november_2025_core_v2.pdf">Sec3 Report</a></td></tr><tr><td>Neodyme</td><td>Pye V2 (revised)</td><td>November 2025</td><td>Security Review</td><td><a href="https://github.com/pyefi/security/blob/master/security_audits/neodyme_novemember_2025_core_v2_revision.pdf">Neodyme Report</a></td></tr></tbody></table>

## Validator Going Offline

If a validator ceases operations before a maturity date, RT payments will stop. Any rewards accrued up to that point are safe and redeemable. Your PT is unaffected — it always redeems 1:1 for SOL at maturity. **Solana does not have slashing.**

{% hint style="warning" %}
Do your own research before choosing a validator or buying their rewards. Pye conducts due diligence before listing but does not have visibility into individual validator operations or financials.
{% endhint %}

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## Commission Changes

Validators can change their commission structures over time. If a validator reduces what they share back to stakers, RTs on that market may be worth less than projected.

Review a validator's historical commission behavior before buying their RTs.

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## Smart Contract Risk

Pye's official audit reports and verifications from independent security companies. Security is engineered into the protocol through a non-custodial architecture that ensures no one can ever take possession of validator identity or withdrawer keys. Instead, the system functions as a transparent wrapper on top of the native Solana Stake Program, where all Principal (PT) and Reward (RT) tokens remain redeemable at maturity effectively acting as a fungible [withdraw authority](https://solana.com/docs/references/staking/stake-accounts). However, bugs or vulnerabilities in on-chain programs could result in loss of funds. Pye's contracts have been audited — but no audit guarantees the absence of vulnerabilities.

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## Counterparty Liquidity Risk

If orderbook liquidity thins out, your order may sit unfilled or rates may widen. This does not put your principal at risk. You can reduce order size, adjust your discount rate, or wait for liquidity to improve.

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