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Risk Disclosure

Inverse Finance held a bug bounty contest for the FiRM and DBR contracts on Code4rena and we have a Hats Finance bug bounty vault that provides a legal source of revenue for anyone who finds vulnerabilities in our products.
DeFi and smart-contracts are not 100% safe no matter how many audits or white-hat hacker attempts that are made to break it, there is an ever-present risk that previously undiscovered vulnerabilities surface without warning.
You may lose 100% of your funds in case of an unidentified exploit of hack. There are no refunds and users participate in FiRM, Frontier, Inverse Finance and associated products at their own risk.

Potential risks

This is a list of some, but not an exhaustive list of risks associated with using Frontier and Inverse Finance products:
  1. 1.
    Smart contract failure risk: Despite our security efforts, our contracts may get exploited and drained.
  2. 2.
    Arbitrage risk: If you buy DOLA and pay over $1 or sell it for under $1 OR supply liquidity at the incorrect price, your trade is likely to be arbitraged and you may end up holding less DOLA than expected.
  3. 3.
    Liquidation risk: If you do not add sufficient collateral to your Frontier position and the prices of your borrowed assets depreciate beyond your loan to value ratio, you may get liquidated.
  4. 4.
    Dollar peg risk: The DOLA stablecoin USD peg may fail during extremely abnormal market conditions.