Francium-DeFi
  • 👏 Welcome to Francium
  • ⭐️ Honourable Mentions
  • Farming Guide
    • 💡 What is Leveraged Farming?
    • ◎ New to Solana?
    • 📖 How to use
    • Step by Step Guide
      • Farm
        • Adjust Position
        • Using Templates to Create Positions
      • Lend
    • Auto-Compound
    • Interest Model
    • Liquidation
    • Stop-loss
    • Fee & Params
    • Risks
    • Price Feed & Oracles
  • 🧮 Farming Calculator
    • Explanation
    • How to use
  • ⚙️Auto-Rebalance Vaults
    • Introduction to Auto-Rebalance Vaults
    • Pseudo-Delta Neutral Strategy w/ Auto-Rebalance
    • Auto-Rebalance
    • Backtesting
    • Step-by-Step Guide
      • Invest in Auto-Rebalance Vaults
      • Withdraw from Auto-Rebalance Vaults
  • Risk Disclosure
  • Parameters
  • 🔍 Strategy Guide
    • Basic Strategies
    • Neutral Hedge Strategy
    • PDN Rebalance
    • How to use
  • 🏫 EDUCATION
    • Superiority of DeFi on Solana
    • APR Calculated on Francium
    • Pseudo-Delta Neutral Strategy
  • Dev Resource
    • Francium SDK
  • Resources
    • Terms of Use
    • Roadmap
    • FAQ
    • Audits
    • Integration
    • LOGO & Brand
    • Contacts & Links
    • External Links
    • Terminologies
  • Other Languages
    • Turkish
    • Vietnamese
    • Korean
    • Japanese
    • Russian
    • Hindi
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On this page
  • Risks to Lenders
  • Risks to Yield Farmers
  • Smart Contract Risks
  • Risk Control by Francium Protocol
  1. Farming Guide

Risks

PreviousFee & ParamsNextPrice Feed & Oracles

Last updated 1 year ago

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:

    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.

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.

Check the audit details here:

https://coinmarketcap.com/alexandria/glossary/impermanent-loss
https://defiyield.app/advanced-impermanent-loss-calculator
audits