🛑Risks
Risks of using Abas
ABAS IS PROVIDED “AS IS”, AT YOUR OWN RISK, AND WITHOUT WARRANTIES OF ANY KIND. No developer or entity involved in creating ABAS will be liable for any claims or damages whatsoever associated with your use, inability to use, or your interaction with other users of the ABAS, including any direct, indirect, incidental, special, exemplary, punitive, or consequential damages, or loss of profits, cryptocurrencies, tokens, or anything else of value.
We recommend taking appropriate risk management precautions when depositing into any on-chain DEFI protocol to ensure the safety of funds.
3rd-Party Protocol Risks
Since Abas utilizes both Drift Protocol and Mango Markets to execute its arbitrage strategies, users will be subject to 3rd party protocol risks when using Abas.
We encourage all users to familiarize themselves with the documentation for both Drift and Mango as well as their respective risks and disclaimers. Links to their documentation can be found below:
If one or both of the exchanges are not available, Abas may not be able to place trades or exit open positions.
Funds are deposited in Drift Protocol and Mango Markets. If one or both of the exchanges are not available, Abas may not be able to deposit and withdraw funds.
Leverage
Abas also utilizes leverage to amplify returns. This introduces some risks.
While abas is designed to rebalance users' collateral between Drift and Mango, the risk of leverage comes from the fact that the rebalancing of collateral may not always be possible due to various factors, for example, Solana Network downtime, exchange availability, not enough realized gains, etc...
Solana Network Instability
While Abas runs its own Solana validator node, there may be situations where we are unable to get transactions to execute thus not able to place trades, update user settings, deploy bug fixes, exit positions, rebalance collateral, etc...
Smart Contract Risks
While the Abas Protocol has had its smart contract code fully audited and undergone rigorous testing, there remains a risk that assets deposited into the protocol could suffer complete or permanent loss should the protocol’s code suffer a catastrophic failure.
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