Risks and Terms
Risks and Terms & Conditions
⚠️ General Disclaimer:
Interface (Stackfi App) ≠ Protocol (on-chain smart contracts)
Protocol is governed by DAO, not a single entity
Interfaces may go offline, but on-chain positions remain accessible
🔒 Protocol Technical Risks:
Oracle Risk:
Oracles (Chainlink, Redstone) are critical; incorrect prices can trigger bad liquidations
MEV & Sandwich Attacks:
Common DeFi issue; users should use protective RPCs and limit slippage
Stablecoin & Peg Risks:
Frozen assets or de-pegs may affect lending pools
Collateral base must be diversified by DAO
Liquidation Risks:
Liquidations done by third parties, not the protocol
Failures can cause under-collateralization; Reserve Fund helps mitigate
AllowedList Risks:
Exploitable or misconfigured contracts can threaten pool solvency
LP Withdrawal Limitations:
High pool utilization may prevent instant withdrawals
Similar to Aave/Compound, mitigated via interest curve changes
Wallet Issues:
Wallet connection errors can hinder protocol use
Hacks & Smart Contract Failures:
Any exploit or malfunction may result in partial/full loss of funds
Governance Risks:
Until fully decentralized, DAO actions depend on multisig performance
Timelocks are in place for protection
🧪 Interface & App Risks:
Beta Software: Experimental, no guarantees on performance or safety
Software Weaknesses: May contain bugs, vulnerabilities, or be targeted by malware
Blockchain Dependencies: Breakdowns or consensus attacks can affect Stackfi
Complex Protocol Logic: Not for beginners; users must understand the risks
Data Accuracy: UI data is automated, may be incorrect or delayed
Flawed Smart Contract Logic: Bugs in logic can misfire or misallocate funds
UI Confusion: User errors may arise from poor interface design
Legal Risks: Jurisdictional regulations may affect availability and operations
Theft Risk: Hacks, flash loans, and attacks may result in total asset loss
Conclusion: Use Stackfi only if you fully understand the protocol and risks. Always confirm actions on-chain, secure your wallet, and remain cautious in DeFi.
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