Smart Contract Risks BFC Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which type of smart contract risk is most directly associated with the inability to modify a deployed contract to fix a discovered flaw?

   • AScalability risk
   • BImmutability risk
   • CInteroperability risk
   • DCounterparty risk
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A team is developing a smart contract for a lending platform. They want to ensure the contract behaves correctly for all possible inputs and edge cases. Which risk mitigation strategy is most appropriate for this goal?

   • AUsing a testnet to simulate typical user behavior
   • BConducting a single code review by the development team
   • CFormal verification of the contract's logic against its specification
   • DRunning a bug bounty program after deployment
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which legal risk arises when it is unclear which jurisdiction's laws apply to a smart contract transaction that spans multiple countries?

   • AOracle manipulation
   • BInteger overflow
   • CJurisdictional uncertainty
   • DReentrancy attack
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A smart contract for a decentralized insurance platform relies on an external price feed to determine payouts. The price feed is provided by a single oracle that has been compromised, causing incorrect payouts. Which risk category does this scenario primarily illustrate?

   • AInteger overflow vulnerability
   • BOperational risk due to dependency on external data
   • CLegal risk due to jurisdictional uncertainty
   • DAccess control vulnerability
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A development team is building a smart contract that handles large token amounts for a payment system. They are concerned about integer overflow in balance calculations. Which secure development practice is most appropriate to mitigate this risk?

   • AUse floating-point numbers for all balance calculations to avoid overflow.
   • BIncrease the maximum token supply to a very large number so overflow is unlikely.
   • CUse a well-tested, audited library that provides safe arithmetic operations, such as OpenZeppelin's SafeMath.
   • DWrite custom arithmetic logic and rely on thorough unit testing to catch edge cases.
   Reveal Solution Discussion Select an answer first