# What are the risks of staking with Hipo?

Staking with Hipo involves certain risks that users should be aware of:

**Smart Contract Security**: There is a risk of smart contract vulnerabilities or bugs within Hipo's codebase. Hipo conducts regular security audits and maintains an extensive bug bounty program to minimize this risk.

**Slashing Risk**: On the Hipo platform, validators bear the slashing risk. Validators seeking to borrow TON from Hipo and engage in validation rounds must initially furnish the slashing penalty amount and the reward for that round. This precaution ensures that the penalty is covered without diminishing user stake amounts in the event of a slashing.


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