Smart Code Fallback Not Working as Expected

I’m using the following smart code in my email greeting:

{{contact.first_name|There|trim}},

I’m noticing unexpected behaviour:

• If the first name exists, the email returns:

  “Hi Dev Team |”

• If the first name does not exist, it returns:

  “Hi” (without the fallback value)

I was expecting the fallback value “There” to be used when the first name is missing.

Are you experiencing this issue as well, or is there something I might be missing in how the smart code is handled?