Risk disclosures

When you borrow, your collateral must stay worth enough to cover the loan. If its value falls, or your debt grows with interest, until your position crosses the market’s liquidation threshold, anyone can repay part of your debt and take part of your collateral at a discount — the liquidation bonus.

Keep a margin above the threshold. The health factor shown in the app is an estimate and can lag the chain.

The markets value assets using price feeds (oracles). A feed can be late, wrong, manipulated or unavailable. A wrong price can trigger liquidations that should not happen, or prevent ones that should; a stale price can block borrowing or withdrawing.

Prices for tokenised stocks depend on the underlying market being open. Outside trading hours they may not update, or may be quoted from thinner sources.

What you supply is lent to borrowers. When most of it is borrowed, you may not be able to withdraw until borrowers repay or new supply arrives. Rates rise sharply at high utilisation to encourage that, but nothing guarantees it happens quickly.

• Deposit caps and borrow limits can prevent you from adding to a position.
• Collateral tokens can have thin on-chain liquidity, which can make them hard to sell at a fair price.
• If liquidations cannot clear, a market can be left with bad debt, shared by those who supply to it.

EURC · Circle

EURC is a euro stablecoin issued by Circle. Its value depends on Circle holding reserves and honouring redemptions. It can lose its peg to the euro, be frozen at an address by its issuer, or be affected by the insolvency, regulation or decisions of Circle or its banking partners.

xStocks

xStocks such as SPYx and QQQx are tokens issued by a third party that track an underlying share or fund. They are not the share itself: holding one gives no shareholder rights, and its value depends on the issuer holding the underlying assets. The issuer can pause, freeze or restrict transfers, change its terms, or fail. xStocks are not offered to US persons.

Kurate chooses the assets listed and sets each market’s loan-to-value, liquidation threshold, caps and rate curves. Those choices can prove wrong in conditions nobody anticipated, and parameters can change over time. Every change needs two of three multisig signatures and is published on-chain.

The rules on crypto-assets, tokenised securities and decentralised lending are still changing too. A change can restrict access to the app, an asset or a market in your country, and lending, borrowing and swapping may have tax consequences for you.