Risks
- Asset Return TimingFor example, if the utilization is too high and most of the assets in the pool are occupied, users may not withdraw their deposits on time until leveraged farmers repay their debt.
- Bad Debt
- Loss of Capital
- Price impact when entering/exiting a position
- Impermanent Loss (IL)
- Negative APY
- Liquidation
Francium is audited by two institutions. However, users should always be aware of the unknown risks caused by code or hackers.
- Only whitelisted assets & targets can be invested by users.
- To avoid unpredicted fluctuations in the crypto market, we allow users to set a stop-loss position.
- Francium has an embedded/underlying anti-price manipulation mechanism.
- Francium stores 10% of loan interest in Rainy Day Fund to reduce tail risk to a minimum.
Last modified 1yr ago