Platform risks

Legal: Users accept and understand both "Terms of Use" as well as any "Disclaimer" provided by DeFiTuna.

Smart Contract Risks: The Solana Mainnet remains in beta, which means smart contracts carry a potential risk of exploitation. Such risks are not only limited to DeFiTuna but also apply to platforms that DeFiTuna is integrated with, including, but not limited to Orca, Raydium , PYTH. To address this concern, DeFiTuna is currently undergoing several audits with independent auditing firms in order to mitigate risks. We will be sharing all findings on our DOCS . Risk of Liquidation: Borrowers understand and accept the risk of their position being partially/fully liquidated in an event where their position is deemed risky. Borrowers accept that no liquidation is guaranteed to happen in a timely manner . Limit orders is also not a guarantee. 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 on Pyth as its primary oracle. Any disruptions or manipulations in service within the oracle system can result in incorrect price feeds, potentially impacting user transactions and leading to account freezes caused by invalid oracle data.

Liquidation Risk: Because DeFiTuna allows users to take under collateralised loans (More information can be found here) , our system runs a liquidator bot that monitors all positions 24/7. To insure no bad debt to the Lending pool, DeFiTuna will partially liquidate any positions deemed risky. Please check here for more information regarding liquidations.

Divergence Loss: Commonly referred to as impermanent loss, this occurs when token prices move away from their initial deposit values, reducing the liquidity’s value compared to simply holding the tokens. Market volatility can result in the value of deposited liquidity being lower upon withdrawal than at the time of deposit, creating potential losses for liquidity providers. For more details, the Uniswap team’s blog post provides an excellent overview here. You can also learn more about it from some of our internal resources here. It’s worth noting that the risk of divergence loss tends to be greater in concentrated liquidity pools.

Lending Pool 100% Utilization Risk: There may be instances where utilisation reaches 100%. For reference, the ideal utilisation is set at 90%, which we refer to as "target utilisation." At the target utilisation level, the APY is set at 35%. However, there may be periods when utilisation exceeds 90% and even reaches 100%. To address this, we have implemented a curve where borrowers are charged 120% APY at full utilisation to incentivise position closures. Users should understand that this scenario carries the potential risk of their funds being fully utilised, but in return, they will receive significantly higher APY rates.

Wallet providers: DeFiTuna is compatible with a wide range of wallets including but not limited to Phantom, Solflare and Backpack. DeFiTuna has no way of protecting users if a Wallet provider that they are using is exploited. Users should understand this risk and do their due diligence when choosing their wallet provider.