Risks

Providing liquidity to ichi.farm or minting stable coins on ichi.farm is not without risks. Please don’t supply your life savings, or assets you can’t afford to lose, to ichi.farm.

Minting

When minting ichi.farm stable coins, you are exposed to some risks:

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:

   • Maker Dao risks: https://makerdao.com/en/whitepaper/#risk-parameters-controlled-by-maker-governance

   • USDC risks: https://support.usdc.circle.com/hc/en-us/articles/360001314526-Circle-USDC-Risk-Factors

   • USDT risks: https://tether.to/legal/

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

When providing liquidity to the ichi.farm exchange, 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 ichi.farm governance token, you are exposed to many risks:

• Smart contract issues

• Market, trading, liquidity, and exchange risks