Risks

Providing liquidity to ichi.farm or minting stable coins on ichi.farm is not without risks.   Please don’t supply your life savings, or assets you can’t afford to lose, to ichi.farm.
Minting
When minting ichi.farm stable coins, you are exposed to some risks:
1.
Smart contract issues, bugs, or economic loopholes/exploits with the ichi.farm protocol
2.
Risks with the digital assets used as collateral, typically stable coins:
Maker Dao risks: https://makerdao.com/en/whitepaper/#risk-parameters-controlled-by-maker-governance​
USDC risks: https://support.usdc.circle.com/hc/en-us/articles/360001314526-Circle-USDC-Risk-Factors​
USDT risks: https://tether.to/legal/​
3.
Market, trading, liquidity, and exchange risks associated with non-collateral, cryptocurrency assets
4.
Governance risks: Governance could make poor decisions on treasury management or important stable coin parameters, such as minimum reserve percentage
Liquidity Provision
When providing liquidity to the ichi.farm exchange, you are exposed to many risks:
Smart contract issues
Impermanent loss: https://cointelegraph.com/news/report-impermanent-loss-on-uniswap-and-other-amms-is-always-permanent​
Market, trading, liquidity, and exchange risks
Farming
When staking liquidity pool tokens to get ICHI, the ichi.farm governance token, you are exposed to many risks:
Smart contract issues
Market, trading, liquidity, and exchange risks

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Contents

Minting

Liquidity Provision

Farming