Risks

Zybra smart contracts interact directly with Real World Asset protocols and users should be aware of various risks associated with such infrastructure dynamics.

Risk of using the platform

Financial Risk

Asset-backed Devaluation: In RWA-based DeFi, assets are typically backed by real-world collateral, such as loans or real estate. Users should consider the risk of the underlying assets losing value, which could lead to a decrease in the value of their holdings.
Interest Rate Risk: RWA protocols often involve interest rate dynamics. Users should be aware of interest rate fluctuations, which can impact the returns on their investments.
Default Risk: If the borrowers or issuers of the real-world assets default on their obligations, it can result in losses for the protocol and, consequently, for users who have invested in the assets.

Operational Risk

Oracles and Data Feeds: Like Zybra, RWA protocols rely on oracles(Chainlink) and external data feeds to obtain real-world data. Operational failures or inaccuracies in these feeds can lead to incorrect asset valuations and liquidations.
Maintenance and Downtime: Operational disruptions, system maintenance, or downtime in the RWA protocols can affect platform's ability to transact and manage our user assets.

Protocol Logic Risk

Complexity of Protocols: RWA-interactive DeFi protocols like Zybra can be complex in design. Users are urged to thoroughly understand the protocol's logic, rules, and mechanisms to avoid unintended consequences.
Governance Risk: Users may have voting or governance rights on the platform. Please be aware of the risks associated with governance decisions, including protocol upgrades or changes.

Smart Contract Risk

Code Vulnerabilities: Smart contracts can contain vulnerabilities or bugs that may be exploited by malicious actors. Users are urged to assess the quality of the code through audits and security assessments before making any deposits to the protocol.
Contract Upgrades: Changes to smart contracts or protocol upgrades can introduce risks if not executed properly. Users are urged to try and understand the upgrade process and its implications. Zybra is dedicated to conduct contract upgrades using the most efficient methods possible.

Infrastructure Risk

Platform dependency : The platform leverages existing networks of selected RWA lending protocols. Users should consider the risk of infrastructure failures or disruptions at both scales.
Scaling and Congestion: High network congestion or scaling issues on the underlying blockchain can affect the performance and functionality of RWA-interactive DeFi protocols.

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Risk of using the platform

Financial Risk

Asset-backed Devaluation: In RWA-based DeFi, assets are typically backed by real-world collateral, such as loans or real estate. Users should consider the risk of the underlying assets losing value, which could lead to a decrease in the value of their holdings.

Interest Rate Risk: RWA protocols often involve interest rate dynamics. Users should be aware of interest rate fluctuations, which can impact the returns on their investments.

Default Risk: If the borrowers or issuers of the real-world assets default on their obligations, it can result in losses for the protocol and, consequently, for users who have invested in the assets.

Operational Risk

Oracles and Data Feeds: Like Zybra, RWA protocols rely on oracles(Chainlink) and external data feeds to obtain real-world data. Operational failures or inaccuracies in these feeds can lead to incorrect asset valuations and liquidations.

Maintenance and Downtime: Operational disruptions, system maintenance, or downtime in the RWA protocols can affect platform's ability to transact and manage our user assets.

Protocol Logic Risk

Complexity of Protocols: RWA-interactive DeFi protocols like Zybra can be complex in design. Users are urged to thoroughly understand the protocol's logic, rules, and mechanisms to avoid unintended consequences.

Governance Risk: Users may have voting or governance rights on the platform. Please be aware of the risks associated with governance decisions, including protocol upgrades or changes.

Smart Contract Risk

Code Vulnerabilities: Smart contracts can contain vulnerabilities or bugs that may be exploited by malicious actors. Users are urged to assess the quality of the code through audits and security assessments before making any deposits to the protocol.

Contract Upgrades: Changes to smart contracts or protocol upgrades can introduce risks if not executed properly. Users are urged to try and understand the upgrade process and its implications. Zybra is dedicated to conduct contract upgrades using the most efficient methods possible.

Infrastructure Risk

Platform dependency : The platform leverages existing networks of selected RWA lending protocols. Users should consider the risk of infrastructure failures or disruptions at both scales.

Scaling and Congestion: High network congestion or scaling issues on the underlying blockchain can affect the performance and functionality of RWA-interactive DeFi protocols.