Risk Disclosure

Welcome to our Stabull Decentralized Exchange (“the Platform”), which operates on the Polygon and Ethereum blockchains. Our Platform enables users to swap between different stablecoins and to add or remove liquidity in various pools. This Risk Disclosure document is intended to inform you of the potential risks involved in using our Platform. By using the Platform, you acknowledge and agree to the risks outlined below.

1. General Blockchain Risks
1.1 Blockchain Vulnerabilities: Both Polygon and Ethereum networks are subject to potential vulnerabilities, including bugs in the protocol, 51% attacks, and other unforeseen issues that could compromise the network’s security and integrity.

1.2 Network Congestion and High Fees: Network congestion can lead to significant delays and higher transaction fees which are outside of our control. During peak times, transactions may take longer to confirm and fees may rise substantially. This may cause swaps or transactions to fail, depending on the setup you have given in your individual case. The platform defaults to 10 minutes as a transaction deadline. You can use a gas monitor for the blockchain you are using to get an indication of congestion on the respective blockchain. Your crypto wallet can also give you the option to change the gas you are willing to pay to ensure a speedy transaction.

2. Smart Contract Risks
2.1 Smart Contract Bugs: The smart contracts governing the Platform have been thoroughly tested and audited; however, they may still contain bugs or vulnerabilities that could lead to loss of funds or other unintended consequences.

2.2 Interoperability Risks: The Platform relies on smart contracts across both Polygon and Ethereum. Any issues in the interoperability between these chains could result in transaction failures or losses.

3. Market Risks
3.1 Volatility: Although stablecoins are designed to maintain a stable value, they can still experience price volatility due to market conditions, regulatory actions, or other external factors.

3.2 Liquidity Risks: The liquidity of stablecoins and liquidity pools on the Platform can fluctuate. Low liquidity may result in significant slippage during swaps or difficulty in removing liquidity from pools.

4. Counterparty Risks
4.1 Decentralized Nature: The Platform operates in a decentralized manner, meaning there is no central authority to manage or guarantee transactions. Users interact directly with smart contracts and other users, assuming all associated risks.

4.2 Third-Party Integrations: The Platform may integrate with third-party services or protocols. Issues with these third parties, such as hacks or insolvencies, could adversely affect your experience and lead to potential losses.

5. Regulatory Risks
5.1 Regulatory Uncertainty: The regulatory environment for DeFi is rapidly evolving. Changes in laws or regulations could impact the legality, availability, and functionality of the Platform for your country.

5.2 Compliance Risks: Users are responsible for ensuring that their use of the Platform complies with all applicable laws and regulations in their jurisdiction. Failure to do so may result in legal consequences or financial losses.

6. Technical Risks
6.1 User Errors: Mistakes such as sending funds to the wrong address, losing private keys, or misconfiguring transactions can result in irreversible losses.

6.2 Software and Hardware Failures: The performance and security of the Platform depend on the reliability of the user’s software and hardware. Failures in these systems can lead to transaction issues or loss of funds.

7. Security Risks
7.1 Hacking and Exploits: The Platform and its users are targets for hacking and other malicious activities. Security breaches can result in the theft of funds, personal data, or other sensitive information. Stabull maintains a bug bounty program to allow researchers to report and be rewarded for disclosing vulnerabilities on the platform.

7.2 Phishing and Social Engineering: Users should be vigilant against phishing attacks and social engineering attempts that aim to steal personal information or access to funds. This also includes bad actors who may impersonate staff on chat channels. All official emails will come from stabull.finance domains.

By using our Platform, you acknowledge and accept the above risks. This Risk Disclosure does not cover every possible risk associated with the use of the Platform, and you should conduct your own research and consult with financial, legal, and technical advisors before engaging in any activities on the Platform. The Platform is provided “as is,” without any guarantees or warranties of any kind. Your use of the Platform is at your own risk.

If you have any questions or concerns regarding this Risk Disclosure, please contact our support team for further assistance.