Smart Contracts are programs deployed on a blockchain that self-execute when predefined conditions are met. While they offer automation and efficiency in transactions, Smart Contracts come with inherent risks, including coding errors, vulnerabilities that can be exploited, or unintended consequences from outdated logic or lack of clarity in the conditions set within the contract. Additionally, any bugs or flaws in the contract's code can lead to significant financial losses or catastrophic failures, as once deployed, these contracts cannot be altered or corrected.