STFIL
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English
  • 🌈STFIL Protocol
  • 📜Whitepaper
  • Liquid Staking
    • 🏦Introduction to Staking
    • ❓FAQ
    • ❗Risks
    • ⏭️Step by Step Guide
      • Stake FIL With Desktop
      • Stake FIL With Mobile
      • Unstake FIL With Desktop
      • Unstake FIL with Mobile
  • STORAGE PROVIDER LENDING POOL
    • 🏢Introduction to Lending Pool
    • ❓FAQ
    • ❗Risks
    • ⏭️Step by Step Guide
      • Start The Onboarding Process
      • Borrow FIL
      • Repay FIL Debt
      • Withdraw FIL
      • Guarantee For Node
      • Close a Leveraged Farming Position
  • GOVERNMENT
    • STFIL tokens integration guide
  • DEPLOYED CONTRACTS
    • Core Protocol
    • Referrals
  • EXTERNAL AUDITS & SECURITY
    • 🔏Security & Audits
    • 🏆Bug Bounty Program
  • Referral program
    • Introduction to our Referral Program
    • StableJumper NFTs
      • Minting Details
      • How to stake StableJumper NFTs on STFIL to earn profits
    • Terms and Conditions
  • ADDITIONAL DOCUMENTATION
    • ⚙️Global Protocol Parameters
    • 🔗Contact Us
    • 🗺️Roadmap
    • 🖼️Brand Assets
    • 📝Resources
    • Github
    • Blog
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  • Potential Risks to Storage Provider
  • High Borrowing Interest Rate
  • Smart Contract Risks
  1. STORAGE PROVIDER LENDING POOL

Risks

The risks mentioned below are likely to be encountered when participating in any DeFi/LSDFi protocol. These risks are not unique to STFIL.

Last updated 1 year ago

Potential Risks to Storage Provider

High Borrowing Interest Rate

  • Risk: This is a scenario where the utilization rate of pool reaches high level.

  • Mitigation:

    • The protocol provides interest rate protection, which has already mitigated interest rate fluctuations, but you still need to closely monitor changes in interest rates.

    • Develop an appropriate repayment plan, for example, when the APY (Annual Percentage Yield) increases.

    • Establish an appropriate stable interest rate loan ratio to combat interest rate fluctuations.

    • When the utilization rate of the pool is high, the supply APY will be relatively high, which will attract more users to stake, thus reducing the utilization rate of the pool.

    • Exercise cautions when borowing FIL if the pool's utilization is high.

Smart Contract Risks

  • Risk: Although third-party firms have conducted audits on our smart contracts, it is still possible for them to contain vulnerabilities in theory.

  • Mitigation:

    • Having smart contracts audited by multiple professional third-party firms decreases the chance of vulnerabilities.

    • We also run a bug bounty program to provide incentives for people to look for vulnerabilities in our live code as an extra layer to filter out any potential issues.

While we do our best to eliminate all possible risks, the DeFi industry is inherently unpredictable and can experience unforeseen events (known as "black swans"). We strongly advise against investing your life savings or risk assets you can’t afford to lose. Try to be as careful with your funds as we are with our code.

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