diff --git a/README.md b/README.md
index dc27dd5..38a3188 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,8 @@ Market Maker Service Kit.
 
 See [docs](/docs/index.md)
 
+The smart contract files under the /contracts directory are intended for internal unit testing purposes. They have not undergone any formal auditing and are not recommended for use in any production environments.
+
 ## Version Release
 
 1. bump version in `package.json`, please follow [semantic versioning](https://semver.org/).