Risks

DeFi protocols are highly risky, please use them at your own discretion.

Risks to Lenders

• Asset Return Timing

  For 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

Risks to Yield Farmers

• Price impact when entering/exiting a position

• Impermanent Loss (IL)

• What is impermanent loss: https://coinmarketcap.com/alexandria/glossary/impermanent-loss

  impermanent loss calculator: https://defiyield.app/advanced-impermanent-loss-calculator

• Negative APY

• Liquidation

Smart Contract Risks

Francium is audited by two institutions. However, users should always be aware of the unknown risks caused by code or hackers.

Check the audit details here: audits

Risk Control by Francium Protocol

• 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.