Although our team has lots of blockchain development experience and we have taken a multitude of safety precautions, participating in DeFi comes with certain risks. Notice that DYOR before investment. Below, we will discuss several potential risks with Crossearn.
Price impact when using Zap
⚠️Risk: If you try to invest a large amount relative to the pool size you may require to use Zap to swap, this may incur a large price impact called slippage.
✅Mitigation: Try to invest with a smaller amount each time and invest multiple times when the token price cools down. Avoid investing with a short period of time.
⚠️Risk: The APY displayed is only a prediction of the future return. It may vary a lot because of mutliple reasons. 1. Reward token price change. 2. Strategy failure. 3. Reward token allocation change.
✅Mitigation: Understand the APY from different perspective and watch different return index; Open market for making sure the successful running of the strategy.
Smart Contract Risks
⚠️Risk: While we have done many tests from our side and our teams are very experienced blockchain developers, the smart contracts are theoretically have vulnerabilities.
✅Mitigation: Having smart contracts audited by multiple professional 3rd party firms decreases the chance of vulnerabilities. Run a bug bounty program to provide incentive for people to look for vulnerabilities in our live code.
We are trying our best to diliminsh all the possible risks, but DeFi events cannot be predicted. So please invest smart, don't gamble.