Risks

Smart Contract Risks

  • Though our smart contracts will be crafted carefully, many times audited, and thoroughly tested, there always exist risks in interacting with smart contracts on the Ethereum network.

External Dependencies

  • LRT² depends on the external price feed oracles for the valuation, token deposit, and vault token mint, and rebalance. Though we will carefully craft several security guards against and choose the well-trusted Oracle service providers, there is a risk of the price feed Oracle being taken or being manipulated.

Regulatory Risks

  • Cryptocurrencies and Ethereum in particular have made the leap from niche to mainstream and this increase in prominence has been accompanied by an increase in governmental scrutiny. Any number of well-meaning and / or ill-informed public policies can temporarily or permanently derail the protocol, including but not limited to:

    • bans on cloud service providers providing services to crypto related enterprises

    • bans on ISPs providing crypto related services

    • onerous taxes levied on various network transactions

    • etc

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