ICHI Docs v3
  • Check out the Updated ICHI Docs!
  • Welcome to Legacy ICHI Docs
  • ICHI Overview
    • What is ICHI?
    • Governance
      • xICHI
      • Voting Guide
      • Proposal Process
    • ICHI Reward Distribution
  • ICHI Vaults
    • Overview
    • Vaults
    • Technical Concepts
      • Vault Build
      • Functional Guide
    • Deposit Guide
  • Multichain
    • Bridging ICHI
      • Polygon
    • Legacy ICHI
  • Resources
    • Contracts
    • Audits
    • Risks
    • FAQs
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On this page
  • Minting
  • Liquidity Provision and Deposits to Vaults
  • Farming
  1. Resources

Risks

PreviousAuditsNextFAQs

Last updated 3 years ago

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.farm protocol

  2. Risks with the digital assets used as collateral, typically stable coins:

    • USDC risks:

    • USDT risks:

    • Maker Dao risks:

  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:

  • Market, trading, liquidity, and exchange risks

Farming

When staking liquidity pool tokens to get ICHI, the governance token, you are exposed to many risks:

  • Smart contract issues

  • Market, trading, liquidity, and exchange risks

https://support.usdc.circle.com/hc/en-us/articles/360001314526-Circle-USDC-Risk-Factors
https://tether.to/legal/
https://makerdao.com/en/whitepaper/#risk-parameters-controlled-by-maker-governance
https://cointelegraph.com/news/report-impermanent-loss-on-uniswap-and-other-amms-is-always-permanent