RISK

What can still go wrong

A deal has two endings and both are written before it opens. Everything below is something that can go wrong inside them, with the line of the program it comes from. None of it is financial advice.

  1. 01

    The collateral can be worth nothing

    If the borrower does not come back, the lender keeps the tokens and only the tokens. They can be worth less than the SOL the lender paid, and they can be worth zero.

  2. 02

    There is no liquidation, in either direction

    The program reads no price, from an oracle or anywhere else. It will never seize a borrower's collateral when the market falls, and for exactly the same reason it will never step in to protect a lender when it does.

    lib.rs:10

  3. 03

    Non-recourse cuts both ways

    A borrower who walks away owes nothing afterwards and is pursued by nobody. A lender left holding a token they did not want has nobody to pursue either.

  4. 04

    You are trusting the mint

    Collateral can be any SPL or Token-2022 mint without a transfer hook, confidential transfers or a permanent delegate; those 5 extensions are refused at creation. A mint's freeze authority, transfer fee or pause is not, and a frozen vault is a stranded deal.

    lib.rs:343

  5. 05

    2 admin instructions, neither of which can move your funds

    The admin can move the treasury address and pause the creation of new deals. Neither is a path to locked collateral, to a funded deal's SOL or to a deadline. The whole list, with line numbers, is on the proof page.

    lib.rs:77

  6. 06

    The program can be upgraded

    Solana programs deploy with an upgrade authority. Until that authority is set to none, whoever holds it can replace the program's code, and that is a power over every deal. The proof page shows the current authority.

  7. 07

    Coming back late is not possible

    Until the deadline a borrower buys the collateral back at the buyback price. From the second after it the lender can take the collateral and the borrower's choice is gone.

    lib.rs:237

The full list of admin powers and the test numbers are on the proof page. Generated from program/ at 7c657b1. The desk itself is open at the app.