Understand the risks.
Bitcoin-backed financing carries liquidation, default, issuer and liquidity risk. The Security Pool is not a guarantee.
- cbBTC is a custodial token issued by Coinbase and backed by BTC it holds. It is not native Bitcoin.
- Market liquidation requires Health Factor below 1.00. Target-health partial liquidation preserves remaining collateral; critical positions may be fully liquidated. Proposed risk settings are not independently validated as safe.
- Liquidation execution costs are explicitly capped. Slippage and rapid price declines can consume borrower equity.
- Each installment has a 604,800-second grace period. Partial payments do not cure all overdue obligations. Default recovery is separate from market liquidation; borrower surplus is protected, not automatically confiscated.
- USDG can depeg or be restricted by its issuer.
- Early repayment charges only interest accrued to date — no future interest, no penalties.
- Returns are variable and not guaranteed. Projected APR is an estimate; 8–14% targets are illustrative only.
- Funds lent to active financing cannot be withdrawn until repaid. Withdrawals are limited to available cash.
- If liquidation does not recover the full debt, the loss is shared by all lenders through a lower share price.
- The Security Pool holds only funded USDG and can be depleted. It does not guarantee or insure principal or returns. USDG and cbBTC carry issuer and custody risk.
Activation requirements
- BLOCKEDLYRO contracts not deployed
Contracts are written and tested locally, but no testnet or mainnet deployment has been made.
- BLOCKEDBTC/USD and USDG/USD oracle feeds not verified
Feed proxy addresses on chain 4663 must come from Chainlink's official directory.
- BLOCKEDNo verified USDG → cbBTC execution route
No router/pool with measured depth has been allowlisted.
- BLOCKEDExit liquidity not validated
Historical supply is not executable liquidity. Current size-dependent USDG exit quotes, depth and stress execution are unverified.
- BLOCKEDProposed 80% LTV is not production validated
A 12.5% price drop reaches the threshold from 70% initial LTV. Gap-downs, oracle latency and limited exit capacity can cause losses.
- BLOCKEDPool entry-timing economics need independent review
New shares may participate in subsequently collected interest accrued before entry. No epoch-based entitlement system has been validated.
- BLOCKEDNo independent audit
No external audit has been performed.
- BLOCKEDLegal / regulatory review pending
Lending, consumer-finance and securities requirements have not been assessed.