Protocol Risks

As always in DeFi, there are several crucial risk factors that users need to be aware of before proceeding with using the platform.

Liquidation Risk

Once a user borrows on Curvance, they are automatically exposed to liquidation risk. As more assets are borrowed, the risk increases. The user is responsible for managing their borrow position and acting accordingly. More information can be found under Liquidations.

Smart Contract Risk

dApps inherently bear smart contract risks through vulnerabilities in their public codebase. To mitigate these vulnerabilities, Curvance has undergone multiple audits to minimize this risk; however, these audits are not a guarantee of exploit prevention.

Additionally, as Curvance builds on top of other DeFi applications, such as Wormhole and Convex, an extra layer of smart contract risk is added. All the dApps and infrastructure used within Curvance are vetted by auditors. However, it is encouraged for all users to conduct their own research and make risk-conscious decisions when interacting with any dApp.

Oracle Manipulation Risk

Curvance relies on oracles for pricing data. In essence, the dual-oracle approach should prevent any manipulation. That said, there will always be that edge case in which both oracles are manipulated or exploited.