Risks

Providing liquidity on app.ichi.org is not without risks. Please don’t supply your life savings, or assets you can’t afford to lose, to app.ichi.org.
Minting
1.Smart contract issues, bugs, or economic loopholes/exploits with the ICHI protocol
2.Risks with the digital assets used as collateral, typically stablecoins:
USDC risks: https://support.usdc.circle.com/hc/en-us/articles/360001314526-Circle-USDC-Risk-Factors​
USDT risks: https://tether.to/legal/​
Maker Dao risks: https://makerdao.com/en/whitepaper/#risk-parameters-controlled-by-maker-governance​
3.Market, trading, liquidity, and exchange risks associated with non-collateral, cryptocurrency assets
4.Governance risks: Governance could make poor decisions on treasury management or important stable coin parameters, such as minimum reserve percentage
Liquidity Provision and Deposits to Vaults
When providing liquidity on app.ichi.org, you are exposed to many risks:
Smart contract issues
Impermanent loss: https://cointelegraph.com/news/report-impermanent-loss-on-uniswap-and-other-amms-is-always-permanent​
Market, trading, liquidity, and exchange risks
Vaults are highly risky as they allow for single sided liquidity deposits, and use those to deposit to a liquidity pool. This means deposits are subject to all risks of providing liquidity on an Automated Market Maker (AMM) including but not limited to Impermanent Loss, loss of all funds due to a hack of the contract, negative IRRs, etc. Please do your own research before depositing.

Last modified 7mo ago