Force Risks

Ethereum has garnered a financial revolution. Decentralized finance or DEFI has become the primary use case for the worlds most used blockchain. But while DEFi has revolutionised what is possible with finance covering all the money "verbs" we see in the traditional world ie saving , borrowing, lending and new primitives such as farming and staking. There are still a number of risks users must be aware of when participating in this new frontier.

Smart Contract Risk

Smart contracts are deterministic pieces of code which process transactions on the blockchain. Force DOA uses complex smart contracts to execute yield bearing strategies across ethereum protocols and other layer 1 blockchains

As with all software there is a risk of bugs which can lead to smart contracts exploits. Force DOA contracts have gone through extensive audits, which can be viewed here. We are confident our contracts are safe however there is always some degree of risk. Always employ risk mitigation / hedging strategies when interacting with any smart contracts.

Counterparty Protocol Risk

Force DOA utilizes other protocols and their associated tokens to find and obtain yields from opportunities available in the DEFI ecosystem. Given security is our highest priority we only choose blue chip protocols for our strategies. Unfortunately it is not possible to audit every protocols code hence there is some counter party protocol risk that must be considered.

User Error

When interacting with any Dapps, smarts contracts or simply sending transactions exercise caution and "measure twice cut once". Ensure to employ the following best practises

  • Validate you are at the correct dapp website . Frequently malicious actors will duplicate websites tricking users into interacting with the incorrect website and malicious contracts

  • Always ensure your transactions are going to the correct address . A feature of ethereum and blockchain in general is immutability. Once a transaction is sent it cannot be reversed

  • Never share your private keys or wallet seed phrase and always keep them offline in a secure place. Preferably use a hardware wallet such as ledger nano

Gas Costs

Ethereum uses "gas" paid in ether to complete transactions. Gas cost can vary dramatically increasing significantly during times of high usage. It’s always worth factoring in your gas costs when evaluating participating in a vault strategy.

If the amount your deploying is small less than 1000 dollars, often the gas costs of deployment and withdrawal can negate the expected yield.

APY (Annual Percentage Yield)

Due to constantly changing price of crypto assets, defi protocols, farming opportunities and market sentiment as a whole. APY can drastically change day to day. Please factor this into your decision making process before committing to a delta strategy

Final Comments

The security of our community of users will continue to be the highest priority for the Force team. All new strategies will be audited before deployment. For more information or concerns please reach out to one of our helpful moderators in our discord or telegram