Octane Finance
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⚠️ Risks
Lending Risk
Risk
- Delay in retrieving lent amount due to high utilization of the tokens lending pool.
- Lending protocol risks can happen due to bad governance decisions.
- Loss of funds due to bad debts in case of pool Illiquidity when liquidators do not liquidate positions in time during high market volatility.
Mitigations
- We plan to use lending aggregators to reduce the risk of lending from one platform.
- We are reducing delays to get out funds by starting with high liquidity token pairs to be available for lending. Eventually, lending partner token utilization pools can be monitored by the protocol to prepare for bad utilization % and warn executors regarding the same.
- We use the best-in-class lending protocol to maximize yield while still maintaining the security of limit order funds. Future DAO calls can help the community choose the best platforms to partner with.
Order Execution Risk
Risk
- Loss of funds due to high slippage caused due to AMM liquidity crunch.
- Front running for large order value execution on AMMs.
Mitigation
- Loss of funds is controlled by giving users the power to customize execution slippage value for successful order execution.
- Front running can be controlled by placing batch orders, completing a certain % of the order at a time, if the order value is huge.
Smart Contract Risk
Risk
- Smart Contracts may have vulnerabilities and exploits may happen, resulting in some inconsistent protocol behavior
Mitigation
- We will audit our smart contract code before going mainnet.
- An audit doesn't fully guarantee a smart contract to be 100% safe. So we will also be running bug bounty programs to find vulnerabilities.
Last modified 5mo ago
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