‘Referenced domains’

I’m a bit confused about one of the scan result sections; ‘Referenced domains’
If a site that I’m backlinking is compromised in some way, does that mean it can impact my website too?

Heya so I think the concern is more that you would be actively linking to a compromised website which most people would not want to have their customers be exposed to that
best course of action would be to remove the link (even temporarily) and let the linked website know

Ah okay, I can understand that, it hasn’t come back as an issue on the scan of my website but I just wanted to understand that section a bit more.