Although there are multiple safety precautions in place, farming and participating in DeFi comes with certain potential risks.
Below, we briefly present the potential risks associated with using the Thorus platform

Risks to Yield Farmers

Impermanent Loss (IL):
  • Risk of (impermanent) capital loss from asset re-balancing in the Automated Market Maker ("AMM") pool.
  • Stable coin pairs can be subject to impermanent loss, if the price of at least one moves off peg. In general, the Impermanent Loss (IL) from this movement is small and transient. Historically, however, there have been instances where stable coins have stayed off-peg for extended periods of time. By opening a position with large leverage, you are also amplifying the potential IL on your principal.
  • Impermanent loss is not unique to our protocol. It is common among all yield farming and AMMs. While it’s not possible to completely mitigate IL, users can choose to yield farm asset pairs that have high correlations to minimize potential IL. For more information on IL, you can consider reading this article.

Smart Contract Risks

  • While the majority of our smart contracts have been audited by multiple third-party firms, they could in theory have vulnerabilities.
  • Having smart contracts audited by multiple professional third-party firms decreases the chance of vulnerabilities.
  • You can find our recent audit reports here.
While we do our best to eliminate all the possible risks, DeFi is an industry where events that no one predicted can occur (the dreaded black swans). We recommend that users only risk assets that they can afford to lose. We assure you that the team works tirelessly to protect users' funds though. Users should do the same.