1. Introduction This Risk Disclosure Statement provides you with information about the risks associated with using BasedApp to interact with DeFi (Decentralized Finance) services’ saving vault, including but not limited to Compound [’DeFi Protocol’]. It is important to read and understand this document before using our services.
Risk Disclosure Statement for BasedApp Saving Vault
2. Smart Contract Risks
Protocol Dependency: Our service relies on the the DeFi protocol's smart contracts. Any malfunction, breakdown, or abandonment of the DeFi protocol may have a material adverse effect on the platform.
Smart Contract Security: While smart contracts are audited, they are still prone to the risk of vulnerabilities and hacks. Users should be aware that their funds are at risk in case of a smart contract failure.
3. Regulatory Risks
Changing Regulations: The regulatory environment for blockchain technologies and decentralized finance (DeFi) is evolving. Changes in regulations or actions by governmental authorities could negatively impact the use of DeFi protocol’s saving vault through our platform.
Compliance: Users are responsible for ensuring that their use of the platform complies with local laws and regulations.
4. Market Risks
Volatility: Cryptocurrency markets can be extremely volatile. The value of assets deposited in the DeFi protocol’s saving vault can fluctuate widely in a short period of time.
Liquidity Risk: There may be times when liquidity is low, affecting your ability to withdraw funds without significant price impact.
5. Technological Risks
Platform Availability: Our platform may experience downtime due to maintenance, updates, or external factors, which could affect access to your funds.
Internet Risks: Issues such as internet connectivity problems or cyber-attacks can impact your ability to access the platform.
6. Operational Risks
User Error: Mistakes such as sending funds to the wrong address or incorrect transactions are irreversible and can lead to the loss of funds.
Custody Risk: Users retain full custody of their digital assets when using DeFi protocol’s saving vault. The loss of private keys or wallet information can result in the permanent loss of assets.
7. Conclusion By using BasedApp, you acknowledge and agree that you have read, understood, and accepted all risks associated with DeFi protocol’s saving vault. We recommend users to exercise caution and only invest funds they can afford to lose.
Disclaimer: This Risk Disclosure Statement does not disclose all the risks and other significant aspects of trading in cryptocurrency and using DeFi platforms. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. We do not take responsibility for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of our platform.