Investment and Financial Management Risks

AutoStaking integrates DeFi financial protocols that are manually selected for their higher APY (Annual Percentage Yield) and enhanced security compared to the average DeFi products available in the market. However, it is important to understand that all investments carry inherent risks. This section outlines the potential risks involved in using DeFi protocols through AutoStaking, the safety measures we take, and important disclaimers.

Understanding the Risks of DeFi Protocols

Even with carefully selected protocols, risks cannot be entirely eliminated. Below are examples of risks associated with specific types of DeFi protocols supported by AutoStaking:

• Lending Protocols (e.g., Morpho):

  • The primary risk in lending protocols is the potential for liquidation delays or inefficiencies. If collateral is not liquidated in a timely manner or if the liquidation price is lower than expected, lenders may suffer losses on the assets they have lent out. This risk is dependent on the performance of the network and the reliability of oracles (data sources that provide real-time price information).

• Pendle Protocol Risks:

  • Market volatility: Sudden changes in asset prices can affect the value of yield positions.

  • Liquidity risks: Low liquidity in certain pools may result in slippage or difficulty exiting positions.

• Other common risks across DeFi protocols include:

  • Smart contract vulnerabilities: Flaws in the code can be exploited by malicious actors.

  • Hacker attacks: DeFi platforms are frequent targets for hacks and exploits.

  • Market volatility: Rapid price fluctuations can lead to unexpected losses.

  • Regulatory risks: Changes in regulations could impact the legality or functionality of certain protocols.

AutoStaking’s Commitment to Security

To enhance the overall security of the AutoStaking platform, we take the following measures:

• Security Audits: Only protocols that have undergone professional security audits are considered.

• Project Safety Measures: We prioritize protocols that have clear safety measures in place, such as compensation mechanisms for users in the event of losses due to protocol security failures.

These steps ensure that the protocols integrated into AutoStaking meet a higher standard of security compared to many products available in the market.

Important Risk Warning

• Investment Risk: All investments, including those made through AutoStaking, carry risks. Users should be aware that they may lose some or all of their invested assets.

• User Responsibility: It is the user’s responsibility to understand the risks associated with each DeFi protocol and to make informed decisions.

Disclaimer

• No Investment Advice: AutoStaking is an AI-powered DeFi tool designed to help users improve their investment efficiency. It does not provide any investment advice. All recommended portfolios are generated based on the user’s investment profile description and AI collaboration.

• Asset Custody: Users’ assets are held solely in their wallets and the respective DeFi protocols. AutoStaking does not custody or control any user assets through contracts or platform mechanisms.