Well, then any LP funds in the contract are in jeopardy, as are any transfers to the contract. That's a lot less painful than all users of the exchange getting

Well, then any LP funds in the contract are in jeopardy, as are any transfers to the contract. That's a lot less painful than all users of the exchange getting robbed. So the theoretical "bug bounty" is way lower on a decentralized exchange. Decentralized exchanges have a smaller attack surface than centralized exchanges, and be publicly & professionally audited. That's why they don't usually get hacked.