Risks and Safety

Smart Contract Vulnerabilities: As with any DeFi protocol, there is a risk of bugs or vulnerabilities in the smart contracts that could be exploited by malicious actors.
Impermanent Loss: Liquidity providers may experience impermanent loss, which occurs when the price of deposited tokens changes compared to their initial ratio, potentially resulting in a loss of value when withdrawing.
Market Volatility: Rapid and significant price changes can affect liquidity positions, leading to potential losses or reduced returns.
Liquidity Pool Risks: Providing liquidity to AMMs carries risks such as slippage, arbitrage, and reduced liquidity during market downturns.

Regular Audits: ICHI undergoes continuous security audits by reputable firms like Quantstamp, Solidified, and CertiK to identify and mitigate potential vulnerabilities.
Automated Risk Management: ICHI’s Vault Algorithm includes automated risk management features that dynamically adjust liquidity positions based on over 25 market indicators to mitigate impermanent loss and market volatility.
Chainlink Keepers: The use of Chainlink Keepers ensures reliable and efficient execution of onchain tasks, reducing the risk of manual errors and enhancing the overall security of the protocol.
Extreme Volatility State: In cases of extreme market volatility, ICHI can lock vaults to prevent further deposits, requiring human intervention to reassess and rebalance, thereby protecting users' funds.

Last updated 8 months ago

Smart Contract Vulnerabilities: As with any DeFi protocol, there is a risk of bugs or vulnerabilities in the smart contracts that could be exploited by malicious actors.
Impermanent Loss: Liquidity providers may experience impermanent loss, which occurs when the price of deposited tokens changes compared to their initial ratio, potentially resulting in a loss of value when withdrawing.
Market Volatility: Rapid and significant price changes can affect liquidity positions, leading to potential losses or reduced returns.
Liquidity Pool Risks: Providing liquidity to AMMs carries risks such as slippage, arbitrage, and reduced liquidity during market downturns.

Regular Audits: ICHI undergoes continuous security audits by reputable firms like Quantstamp, Solidified, and CertiK to identify and mitigate potential vulnerabilities.
Automated Risk Management: ICHI’s Vault Algorithm includes automated risk management features that dynamically adjust liquidity positions based on over 25 market indicators to mitigate impermanent loss and market volatility.
Chainlink Keepers: The use of Chainlink Keepers ensures reliable and efficient execution of onchain tasks, reducing the risk of manual errors and enhancing the overall security of the protocol.
Extreme Volatility State: In cases of extreme market volatility, ICHI can lock vaults to prevent further deposits, requiring human intervention to reassess and rebalance, thereby protecting users' funds.

Last updated 8 months ago