Platform risks

Legal: Users accept and acknowledge both the "Terms of Use" and any "Disclaimer" provided by DefiTuna.

Smart Contract Risks: The Solana Mainnet remains in beta, which means smart contracts carry a potential risk of exploitation or malfunction. These risks are not exclusive to DefiTuna but also apply to any integrated platforms, including but not limited to Orca, Raydium and Pyth. To help mitigate these risks, DeFiTuna is currently undergoing multiple independent audits. All findings will be transparently published in our Audits section. Risk of Liquidation: Borrowers understand and accept that their positions may be partially or fully liquidated if deemed too risky. DefiTuna does not guarantee that liquidations will occur in a timely manner. Similarly, limit orders are also not guaranteed to execute as expected. Network Congestion: During strong network Congestion or even a network halt , DefiTuna assumes no risks and guarantees on timely service. This means that users can experience loss caused but not limited to mispricing

Oracle Risks: DeFiTuna relies primarily on Pyth as its oracle provider. Any disruptions, inacurracy, or manipulation of the oracle feed may result in incorrect price data, potentially affecting user positions or leading to account freezes based on invalid data.

Liquidation Mechanism: As DefiTuna allows undercollateralised loans (more information can be found here), it employs a 24/7 liquidation bot that monitors all positions. To prevent bad debt in the Lending pool, the system will partially liquidate any positions identified as high-risk. Please refer to this page here for detailed information about our liquidation process.

Divergence Loss: This occurs when token prices diverge from their initial deposit values, resulting in the liquidity being worth less than simply holding the tokens. High market volatility can worsen this effect, particularly in concentrated liquidity pools. For more information, you can refer to the Uniswap team's blog post or consult some of our internal resources here.

Lending Pool 100% Utilization Risk: While the target utilization of the lending pool is set at 90%, there may be times when utilization spikes to 100%. At 90% the lending APY is set at 36%. To discourage full utilization, the APY for borrowers increases steeply to 160% at 100% utilization. While this results in significantly higher returns for lenders, it also means that all funds may be temporarily locked, preventing withdrawals until utilization decreases.

Wallet providers: DefiTuna is compatible with a wide range of wallets including Solfare, Phantom, Backpack, Jupiter, Glow, Brave, and Trust wallets. However, DefiTuna cannot protect users if the wallet provider they are use is compromised or exploited. Users are advised to conduct proper due diligence when selecting their wallet provider.