Risk Disclosure
The inherent risks of using decentralized finance protocols. Read carefully.
1. Smart Contract Risk
Smart contracts are immutable code that executes automatically. Despite security audits and best practices, contracts may contain undiscovered bugs, vulnerabilities, or logic errors that could result in partial or total loss of funds. The protocol uses OpenZeppelin's battle-tested libraries and follows the Checks-Effects-Interactions pattern, but no smart contract can be guaranteed 100% secure.
2. DeFi Protocol Risk
The protocol supplies idle USDT to Aave V3 to generate yield. Aave is one of the largest and most audited DeFi protocols, but it is not risk-free. Potential risks include: smart contract vulnerabilities in Aave, liquidity crises, oracle failures, governance attacks, and regulatory actions. If Aave is compromised, a portion of the protocol's funds could be at risk.
3. Chainlink VRF Risk
The protocol relies on Chainlink VRF v2 for random winner selection. While Chainlink is the industry standard for on-chain randomness, potential risks include: oracle network failures, delayed fulfillments, or (extremely unlikely) compromised oracle nodes. If VRF fails, the draw is paused until the oracle recovers — your funds are not at risk, but the draw may be delayed.
4. Market and Gas Risks
Ethereum gas fees can be volatile and may make small deposits economically impractical. The protocol recommends depositing at least 30 USDT to minimize gas overhead. USDT is a stablecoin pegged to the USD, but stablecoin de-pegging events have occurred historically and could affect the value of your deposits.
5. No Guarantee of Returns
The protocol does not guarantee that you will win any draw. Your odds of winning depend on the number of active users. Deposits extend your eligibility duration, not your odds per draw. Never deposit more than you can afford to lose. Past performance does not guarantee future results.