Risks Disclosure Statement
Introduction
This Risk Disclosure Statement is a part of and to be read in conjunction with the Idle Finance Interface Terms of Service. Capitalised terms used in this Risk Disclosure Statement shall have the meanings assigned to them in the Idle Finance Interface Terms of Service.
Experimental Nature
The Application and all related software, including blockchain software and smart-contracts, are experimental and relevantly new. The Application is provided on an “as is” and “as available” basis, without warranty of any kind, either expressed or implied, including, without limitation, warranties that the Application or any related software are free of defects, vulnerabilities, merchantable, fit for a particular purpose or non-infringing.
Risk of Software Weaknesses
We do not warrant or represent that the Application or any related software are secure or safe, or protected from phishing, malware or other malicious attacks. Further, the Application and related software may contain weaknesses, bugs, vulnerabilities, viruses or other defects which may have a material adverse effect on the operation thereof, or may lead to losses and damages for you, other users of the Application, or third persons.
Risk Inherent in the Blockchain
The Application interacts with the Protocol and Products deployed on the Ethereum Virtual Machine-compatible blockchain network(s). As a result, any malfunction, breakdown or abandonment of such blockchain(s) may have a material adverse effect on the Protocol and Products and, consequently, on the Application. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the Application and related blockchain software by rendering ineffective the cryptographic consensus mechanism that underpins the blockchain. The smart-contract concept and the underlying software are still in an early development stage and unproven. Although it is very unlikely, an Ethereum Virtual Machine-compatible blockchain network can be attacked which may result in downtime, consensus split, long reorganisation of the chain, 51% attack, or other adverse outcomes each of which may lead to complete loss of your Digital Assets.
Risk Inherent in the Protocol and Products
The Application allows you to interact with the Protocol and Products. Accordingly, when using the Application you may be exposed to certain risks related to the operation and functioning of the Protocol and Products. The Protocol and Products are complex, the majority of its components and functional elements are risky and experimental. You should not use the Application to interact with the Protocol and Products unless you fully understand how it works and the consequences of transactions carried out with the use of the Protocol and Products. The Application derives information from the Protocol and Products, related software, and Ethereum Virtual Machine-compatible blockchain networks in an automated manner, which means that such information is not verified. The Protocol and Products may not (i) perform as intended, (ii) meet your expectations, (iii) be secure or error-free, or (iv) be profitable. The data available within the Application is non-binding and provided for information and descriptive purposes only, and you shall independently verify such data and decide whether to transact with the Application and/or Protocol and Products.
Risk of Inaccurate Data
The Application derives certain information from blockchain networks and related software, such as oracles, in an automated manner, which means that such information is not verified or checked. As a result, such information can be incorrect, incomplete, untimely, inaccurate, or insufficient. No warranties are being made that any information provided through or in the Application will be complete or accurate.
Risk of Third Parties Acting Late
Certain functions within the Application or Protocol and Products may have to be executed by third parties, and there is always a risk that such third parties will not act in a timely or reliable manner, or as expected or intended, or may fail to act, which can lead to inaccessibility of the functionality of the Application or Protocol and Products, or partial or complete loss of the respective Digital Assets.
Risk of Flawed Logic
The underlying logic of the Application and related software may be flawed, defective or impaired, which can result in smart-contracts operating incorrectly or not as expected, or transactions being executed in violation of logic which underpins the smart-contracts, which can lead to partial or complete loss of Digital Assets used in the transaction.
Risk of Confusing User Interface
Certain user interface elements or design decisions of the Application can be confusing or mislead you, which may result in the execution of a different action or transaction than intended or desired, or connection of a wrong Digital Wallet, account or network.
Risk of Legal Uncertainty
Our activities are subject to various laws and regulations in the countries where we operate or intend to operate. We might be obliged to obtain different licences or other permissive documents in some or all jurisdictions where we intend to operate our business, therefore, our business in such jurisdictions shall always be subject to obtaining such licences or permissive documents, if so directed by applicable laws. Furthermore, regulatory actions, orders or inquiries may adversely affect the Application and us, or impair our ability to make the Application available. Additionally, changes in applicable laws or regulations or evolving interpretations of existing law could, in certain circumstances, result in increased compliance costs or capital expenditures, which could affect our ability to provide the Application.
Risk of Theft
There is no assurance that there will be no theft of the Digital Assets as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, double-spent attacks, flash-loan attacks, vulnerabilities or defects of the Application or related software, an Ethereum Virtual Machine-compatible blockchain network, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. Any of the above may lead to partial or complete theft or loss of digital assets used in transactions carried out through the Application.
Value and Volatility
The prices of Digital Assets are extremely volatile and subjective and Digital Assets may have no inherent or intrinsic value. Fluctuations in the price of other Digital Assets could materially and adversely affect the value of Digital Assets, which may also be subject to significant price volatility or the underlying logic of the Application or Protocol and Products. We do not guarantee that any Digital Assets will retain their original value, have any specific price or any particular value, or that the use of the Application will be profitable, as the value of Digital Assets depends on factors occurring outside of our control that may materially impact the value and desirability of any particular Digital Assets.
Latest update: May 3, 2023
