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

Last modified 9mo ago