Risks
Read these before you fund a loan or apply to borrow.
Last updated: May 20, 2026
01Custodial risk
There are no on-chain smart contracts protecting deposits in v1. Treasury controls are operational controls.
02Borrower default
Lenders may lose principal if collateral and the insurance pool do not cover a borrower default.
03Collateral price risk
Collateral can fall in value during the 30-day term. There is no mid-loan margin call in v1.
04Insurance pool
Coverage is limited to the actual balance of the pool.
05Regulatory risk
Stablecoin lending may be affected by local regulatory shifts and vendor restrictions.