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.

Last modified 1yr ago