You can use Move’s type system to make financial smart contracts safer because it treats assets as resources that the compiler itself enforces strict rules on. This gives you protection before the contract is even deployed.

The system is linear, which means resources like tokens, positions, or collateral cannot be copied or discarded accidentally. For example, if you define a token as a resource (struct Coin has key, store), the compiler won’t let you duplicate it or forget to handle it properly. That directly blocks common problems like double-spending or losing assets during transfers.

You also gain built-in guardrails against reentrancy and misuse. Since every resource must be explicitly passed, moved, or destroyed, it’s harder to write functions that unintentionally expose vulnerabilities. This shifts many runtime safety checks into compile-time enforcement.

Another big advantage is encoding financial invariants directly in types. You can define in the smart contract logic that collateral always needs to be greater than debt, or that a loan token cannot exist without its matching collateral. Because these conditions live inside type-safe abstractions, you rely less on scattered if checks and reduce the chance of runtime errors.

This makes your financial contracts less error-prone, more predictable, and easier to audit, since many critical guarantees are enforced by the language itself rather than external processes.