FAQ
If BiFi X detects a possible revert in transaction, it will not let you send the transaction. There are several reasons for a revert:
- 1.Insufficient Liquidity: If there is not enough liquidity to take out a flash loan, the transaction cannot be processed. You can wait until enough liquidity is in the protocol, or you can lower your boost.
- 2.Insufficient Fees: BiFi X incurs BiFi X Fees and Flash Loan Fees. If you don't have BiFi tokens in your wallet, you cannot complete the transaction.
- 3.Slippage: If enough possible slippage is detected, the transaction cannot be processed. You can increase the slippage limit, or wait. What is slippage limit?
Bet on BiFi X automatically swaps assets to repay the flash loan. This swap happens in Uniswap V2, which may be subject to slippage on Uniswap, price discrepancy between Chainlink and Uniswap, and front running. Due to these various factors, the transaction may fail.
To minimize the chance of failure, BiFi X gives you the option to increase the slippage limit when it detects possible reverts. You can increase the slippage limit in increments of 0.1%. When you increase the slippage limit, BiFi X sets aside a portion of your initial deposit as a slippage buffer and uses it to account for Uniswap slippage and price discrepancies. Slippage buffer is calculated as
Initial Deposit Amount * Slippage Limit * Boost Multiplier (e.g., 1 ETH * 0.1% * 5X)
Because of this, the final deposit amount may vary from the expected deposit amount you saw before the transaction. Any remaining amount from the slippage buffer is returned to your wallet.
However, it is impossible to 100% prevent reverts. Front running is when an actor identifies a particular swap that will change the price, and makes an order before you to take an arbitrage profit. Front running in DeFi is an inherent problem on DEXs like Uniswap. Because front running is more likely to occur when the swap amount is large, we recommend that you avoid using large capital and boost to minimize any chance of failure.
Last modified 1yr ago