# Chaos Labs is ending its three‑year Aave mandate after a $27m oracle fiasco, deep governance infighting, and mounting fears over who is legally.

*web3 · news · 2026-04-06 · Crypto News*

## Key points

- Chaos Labs is ending its Aave mandate due to disagreements over risk management approaches.
- A $27 million oracle misconfiguration by Chaos Labs caused erroneous liquidations on Aave in March.
- Three core contributors, including Chaos Labs, ACI, and BGD Labs, have recently exited Aave.
- Chaos Labs warns DeFi risk managers lack regulatory protection or clear liability if systems fail.
- Aave faces governance and risk management challenges as it launches its next-generation v4 architecture.

**Companies:** Aave, Chaos Labs

[Read the full story on Crypto News](https://crypto.news/chaos-labs-exits-aave-after-risk-clash-and-legal-fears/)

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