Silopedia
  • Read Me
  • Introduction
    • What is Silo?
  • The Silo Protocol
    • Protocol Design
      • Base and Bridge Assets
      • Silo Deployments
      • Collateral Status
      • Interest Rate Model
        • Dynamic IRM with PI Controller
        • Kink IRM with Multiplier
        • Fixed IRM
      • $XAI
      • Curve LP Markets
      • Incentives
    • Lending 101
      • The Markets
      • The Lender
      • The Borrower
      • Liquidation
    • Risks
      • Smart Contract
      • Economic
      • Oracle
      • Bad Debt
      • Liquidation
    • Integrations
      • Pendle Finance
      • Contango
      • Beefy
      • Factor
  • Walkthroughs
    • Using Silo
      • Connect Wallet
      • Lending (Depositing)
      • Withdrawing
      • Borrowing
      • Repaying
    • Delegating $SILO to Vote
      • Delegate to Self
      • Delegate to Somebody Else
    • Farming with $SILO
      • LPing SILO/ETH v3 on Camelot (Arbitrum)
    • Borrowing Strategies
      • Borrow to Short
      • Borrow to Leverage
  • Yield farming opportunities
  • Oracles
  • Liquidate a position manually
  • SiloDAO
    • $SILO
      • Token Allocation and Vesting
    • Governance
    • Creating a Silo
    • Wallets and DAO Contracts
  • Security
    • Audit
    • Formal Verification
    • Bug Bounty Program
    • Smart Contracts
  • Additional Information
    • Brand Assets
    • Developer Docs
    • Submit a Bug
    • Official Channels
    • SiloDAO (Snapshot)
    • SiloDAO (Tally; On-Chain Voting)
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  1. The Silo Protocol

Risks

PreviousLiquidationNextSmart Contract

Last updated 11 months ago

No DeFi protocol is risk free.

When a user interacts with Silo Finance, they should familiarize themselves with the following non-exhaustive list of potential risks:

  • : Code is written by humans and humans can make mistakes.

  • : Protocols rely on economic models and economic models can have unintended consequences.

  • : Lending markets require collateralization and proper collateralization may require liquidations.

  • : Failure in any of the above may cause bad debt and bad debt may mean lenders lose some (or all) of their deposits.

Smart Contract
Economic
Liquidation
Bad Debt