Emergency Functions in DeFi Contracts
Published: August 10, 2025 | Reading time: 7 minutes
Many DeFi protocols include emergency functions as failsafes for when things go wrong. Understanding these functions can be the key to recovering your assets when standard withdrawal methods fail.
What Are Emergency Functions?
Emergency functions are special contract methods designed to handle crisis situations. They typically allow users to withdraw their principal deposits without claiming rewards, bypassing complex logic that might be causing issues.
Common Emergency Functions
emergencyWithdraw()
The most common emergency function, found in many staking and farming contracts. It allows users to:
- Withdraw their staked tokens immediately
- Bypass reward calculation logic
- Forfeit any pending rewards
- Exit even when the protocol has issues
panic() or emergencyExit()
Similar to emergencyWithdraw but may have different implementations. Always check what exactly these functions do before using them.
rescue() or recoverToken()
Sometimes used by contract owners to recover stuck tokens, but may also be available to users in certain situations.
When to Use Emergency Functions
Consider using emergency functions when:
- Normal withdraw functions are failing
- The project website is down or inaccessible
- The protocol has announced a critical bug
- You want to exit quickly and don't care about pending rewards
- The project is shutting down or migrating
Risks and Considerations
Forfeited Rewards
Most emergency functions forfeit any pending rewards. Make sure you understand what you're giving up before proceeding.
Gas Costs
Emergency withdrawals still require gas fees. During network congestion, these can be substantial.
Irreversible Actions
Once you use an emergency function, you typically can't undo the action or claim the forfeited rewards later.
How to Find Emergency Functions
- Go to the contract on Etherscan (or relevant block explorer)
- Click on the "Contract" tab, then "Write Contract"
- Look for functions with names containing "emergency", "panic", or "exit"
- Read the function documentation if available
- Check recent transactions to see if others have used these functions
Step-by-Step Emergency Withdrawal
- Verify the function: Make sure you understand what the function does
- Check parameters: Some functions require pool IDs or amounts
- Connect your wallet: Use the same wallet that deposited the funds
- Execute the function: Fill in required parameters and submit
- Confirm the transaction: Check your wallet for the returned tokens
Real-World Example
In our recent case study, a client's yield farm went offline with $22,500 in LP tokens stuck. The normal withdraw function was tied to the project's frontend, but the emergencyWithdraw function was still accessible. By calling this function directly through BscScan, the client recovered their full principal within minutes.
When Emergency Functions Aren't Available
Not all contracts have emergency functions. In these cases, recovery might require:
- Finding alternative withdrawal methods
- Waiting for the project to restore functionality
- Using more complex recovery techniques
- Seeking professional assistance