SHPRD.FINANCE (the “App”) is a decentralized peer-to-peer protocol a user (“You”) can use to invest in on-chain automated vaults (“Vaults”). Your use of the App involves various risks, including, but not limited to, losses of your crypto-assets and losses due to the fluctuation of the Vaults share prices. Before using the App, you should review the relevant documentation to make sure you understand how the App works.
Using Decentralised Finance comes with risks that any potential user should be aware of. The App is fully disintermediated from launch, users are interacting directly with the smart contract. By using the App and depositing in a Vault, you expressly acknowledge and assume the following risks:
Smart Contract Risk
Smart Contract Risk Smart contracts may be susceptible to security breaches and improper administration. It involves any risk associated to the program code. The current App is in active development. Even audited Code can be prone to errors, bugs, and worse of all, exploits. Users are cautioned to use at their own risk.
Crypto-assets represent a speculative investment and involve a high degree of risk. A significant portion of the demand for crypto-assets is generated by speculators and investors seeking to profit from the short or long-term holding of crypto-assets.
Risk of non-performance of the selected Vaults
The main risk associated with using App is the total loss of your capital engaged while investing in a Vault. Indeed, negative performance may arise either through execution costs associated with each transaction or by a series of adverse trades that follow the Vault’s trade execution.
Legal risk and risk of adverse regulatory intervention in one or more jurisdictions
Blockchain technologies and Decentralised Finance have been reviewed by various regulatory bodies worldwide, including within the European Union. The Service Offering has been structured to comply with European Union law applicable at the time of the offer. The operation of the App may be impacted by the passing of restrictive laws, the publication of restrictive or negative opinions, the issuing of injunctions by national regulators, and the initiation of regulatory actions or investigations. Given the lack of qualifications in most countries, each user is strongly advised to carry out a legal and tax analysis concerning the use of the App according to their nationality and place of residence.
Risk of an alternative, unofficial App
There is a possibility that an alternative app may have been established using the same front code that underlies the App. The official App may find itself in competition with these unofficial apps.
Risk of blockchain and/or crypto-assets unavailability
The blockchain technologies and crypto-assets related to these technologies are mainly autonomous and unregulated; their operation, maintenance and use is generally based on trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity. Thus, there is a risk that blockchain technology and/or the crypto-assets related to this technology cease to be available for a limited or unlimited period of time.
Risk of theft and piracy
Hackers and other malicious, criminal groups or organizations may attempt to interfere with the App or the availability of the App in several ways including, but not limited to, denial of service attacks, Sybil attacks, mystification, surfing, malware attacks, or consensus-based attacks.
Risk of security weaknesses in the App core infrastructure software
There is a risk that we, or other third parties, may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructure elements of the App, by interfering with the use of the App, or causing loss of all or part of the capital engaged.
Risk of weakness or exploitable breakthrough in the field of cryptography
Advances in cryptography, or technical advances such as the development of quantum computers, may present risks for crypto-assets and the App, which could result in the theft or loss of in the use of the Services.
Risk of crypto-assets attacks
As with other decentralized cryptographic tokens and App, the crypto-assets used by the App are vulnerable to mining attacks, including but not limited to, dual-expense attacks, powerful mining attacks, selfish mining attacks, and critical competition attacks. Any successful attack poses a risk to the use of the Services.
Risk of an uninsured loss
Unlike bank accounts or accounts in other regulated financial institutions, funds held through a crypto exchange are generally uninsured.
Risk of winding-up of the project
For a number of reasons including, but not limited to, an unfavourable fluctuation in crypto-assets value, the failure of business relationships or competing for intellectual property claims, the project may no longer be a viable activity and may be dissolved.
Risk of malfunction in the App
The App may be impacted by an adverse malfunction including, but not limited to, a malfunction that results in the loss of market information or a financial loss.
Crypto-assets and cryptographic assets and decentralised finance apps are new, untested technology. In addition to the risks stipulated above, there are other risks that we cannot predict. Risks may also occur as unanticipated combinations or changes in the risks stipulated herein.