Our Risk Management System
TL;DR
Your money is safe as long as major exchanges like Binance or Coinbase remain secure, since that's where most of your funds are held. And this is generally much safer than storing your assets in smart contracts, which can often become attractive targets for hackers.
Counterparty Risk
Exchanges bankrupt; Run away with money; got hacked. Insolvency risk when borrower failed to pay back the loans.
Only choose world tier-1 exchanges as custody who have insurance in place.
First hand Insiders news to respond proactively.
400% over-collateralized loans; Programmatic Margin Call and collaterals liquidation so that lenders / users money are not at risks.
Investment Risk
Lost value on LP tokens triggered by market price decrease when providing liquidity to DEX.
De-pegged to the underlying asset USD.
In-house dynamic hedging by opening corresponding short positions on CEX so that users can always pocket trading fees as LP without directional influences.
Never going to touch al-stablecoin such as USDe or UST that are not backed by real dollars.
On-chain Risk
Even audited smart contracts can still contain bugs and remain vulnerable to exploitation by hackers.
Only work with the the most long-running DEXs that have never been exploited;
Deploy only 15% of the funds on-chain; when mishap happens, compensate with profits generated by arbitrage and insurance plan
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