# Risk assessment for DeFi and DEX transactions

> In DeFi transactions, smart contracts and multi-step transfers can complicate the context.

Canonical: https://legichain.com/en/resources/risk-assessment-for-defi-and-dex-transactions

In DeFi transactions, smart contracts and multi-step transfers can complicate the context. Interacting with a protocol is not, on its own, a negative customer outcome.

## Transaction context

Consider the address's role, the transaction direction and the contract used together. Do not automatically equate a technical interaction with a real person's identity or intent.

## Scope limits

Supported networks and relationship analysis differ between tools. Do not interpret the number of visualised connections as the accuracy or legal sufficiency of the analysis.

## Review approach

Assess the risk indicator with customer information and institutional policy. Create an additional review record in unclear cases; do not reduce all DeFi use to a single risk category.

**See the related product scope** → [Blockchain screening](https://legichain.com/en/blockchain-aml)

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Legichain — technology for identity verification, AML and blockchain screening. Contact: contact@legichain.com