Risk

Investing Risks

Investing involves various risks, including possible loss of principal. Fully understand the risks before using the BiFi and BiFi X.

BiFi is a collateralized lending protocol, where your deposit is used as collateral that enables you to borrow. BiFi X provides leveraged deposit and borrow positions that enable you to maximize your yield farming and trading positions.

Price Change: When the prices of digital assets change, the value of your deposits and borrows change. The same amount of a digital asset may be worth less in terms of fiat currencies.

Liquidation: When your Loan-To-Value Ratio (LTV) rises above 90%, you may be at risk of liquidation. This is one of the highest LTV thresholds in the DeFi lending market today, enabling maximum yield for depositors and borrowers. LTV is the ratio of the value of your collateral (deposits) to the value of your borrows. At liquidation, anyone can repay your borrows and claim your deposits, full or in part. Learn how liquidation works.

Slippage: When you use Bet, BiFi X automatically swaps your asset to repay the flash loan used to give you the leverage. Swap happens on Uniswap V2, which may be subject to slippage, front running, and price discrepancies on Uniswap. These variables can result in your transaction failing. Learn more about slippage.

If you have any questions, please visit our Telegram AMA Group or email us at [e-mail].