Risks
Although we take a multitude of safety precautions and Vicuna Finance will be fully audited, farming and participating in web3 and DeFi comes with certain risks:
Bad debt: the risk of debt accrued by underwater positions in case liquidators do not liquidate in time during a period of high market volatility.
Timing of Asset Return: delay in getting deposited asset back in case of the pool’s high level of utilization. Please note that farmers can borrow the funds as long as they like and there is no fixed term for when the funds must be returned.
Smart Contract Risk: Despite undergoing third-party audits, it's essential to acknowledge the potential existence of vulnerabilities in our smart contracts. Additionally, there is a risk associated with third-party platforms, such as the AMMs we utilize, as they too may contain smart contract vulnerabilities.