All defi protocols carry risks, so it is important to clearly understand the risks before depositing large amounts of money, as listed below are the possible risks associated with using Aptin.

Systematic Risk

  • Market Volatility: Tokens deposited in Aptin are subject to market fluctuations. Users must be prepared for potential depreciation, as token prices can vary widely in the volatile crypto market.

Smart Contract Risk

  • Audit Measures: Aptin prioritizes security by conducting thorough code audits before mainnet launches.

  • Continuous Collaboration: Ongoing partnerships with security firms ensure regular audits for vulnerabilities, aiming to safeguard user funds.

100% Utilization Risk

  • Asset Availability: If an asset reaches full utilization (100% lent out), withdrawals and borrows can't proceed until the rate drops, either by loan repayments or new deposits.

  • Impact Factors: Users with a significant share in a pool or assets with high borrowing demand are more likely to face this risk.

Oracle Risk

  • Price Feed Reliability: Aptin relies on Pyth and Switchboard for price feeds. Inaccuracies in these feeds could lead to incorrect liquidations.

Liquidation Risk

  • Collateral Thresholds: Over-collateralized loans require collateral exceeding the loan value. If the collateral value falls below a certain threshold, liquidation with penalties may occur.

Users should carefully consider these risks and assess their own risk tolerance when using the Aptin platform. It's always advisable to diversify investments and stay informed about market conditions and platform updates.

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