BTESTA Finance
  • BTESTA Finance
  • BTESTA Protocol
    • 🚀-BTESTA SPACE
      • Borrow & Farm
        • Farm with Leverage
        • Borrowing Interest APR
        • Your Position
      • Lend & Earn
        • - BNB Lending V1
        • - BNB Lending (V2)
        • - BUSD Lending
        • - BTCB Lending
        • - USDT Lending
        • - ETH Lending
        • - USDC Lending
      • In-house Bot Reinvest
      • In-house Bot Liquidation
      • Manipulated Price Attack Prevention
  • 📚-STEP BY STEP
    • Deposit
    • Withdraw
    • Refuel
  • 🔑-GUIDELINE
    • Where Does APY Come From For Each Vaults?
  • 🚧-RISKS
    • Risks for Borrowers (Yield Farmers)⚠️
    • Risks for Lenders⚠️
  • Tokenomics
    • 🪐-BTESTA TOKENS
      • BTESTA Staking [Latest Update]🔐
      • xBTESTA Pool [Latest Update]🔐
      • 1st Phase of 'FAIR LAUNCH'
      • 2nd Phase of 'FAIR LAUNCH'
      • $BTESTA Distribution Timeline
    • ⛏LIQUIDITY MINING PROGRAM FOR $BTESTA
      • Liquidity Adding
      • LP Staker
      • Lender
      • Borrower
    • 🔀BTESTA/BNB LP TOKEN V2 MIGRATION
    • 🎉BONUS REWARD
      • 💛Current Reward
      • ✅Early Participants
      • ✅Bonus Period
      • ✅Week 3 & Week 4
  • information
    • 🔒-AUDIT GUARANTEE
    • ✈️-BTESTA ROADMAP
    • 👥-BTESTA COMMUNITY
    • 💡-FAQs
  • Transparency
    • 📂-ADDRESS DEPLOY
    • 📂-TOKEN
    • 📂-CORE SYSTEM
    • 📂-LIQUIDITY SPACE
    • 📂-YIELD FARMING SPACE
    • 📂-TIMELOCK
    • 📂-SPACE TREASURY
    • 📂-DEV FUND
    • 📂-BURN
    • 📂-BORROWER
    • 📂-SPACEFARM
    • 📂-ACTIVATE
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  1. 🚧-RISKS

Risks for Lenders⚠️

PreviousRisks for Borrowers (Yield Farmers)⚠️Next🪐-BTESTA TOKENS

Last updated 4 years ago

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Risk

Alleviation

Loss of capital:

the risk of debt accrued by underwater positions in case 'Destroyer' (liquidators) do not liquidate in time during a period of high market volatility.

We have taken a cautious approach in setting key parameters to ensure a large buffer. We also have provided enough incentive to 'Destroyer' (liquidators) to call and liquidate applicable positions. We believe this risk scenario is very unlikely to happen.

Timing of asset return:

delay in getting deposited asset back in case of the pool’s high level of utilization. Please note that 'Borrowers' (farmers) can borrow the funds as long as they like and there is no fixed term of when the funds must be returned.

We use a triple-slope interest rate to optimize for 90% fund utilization. The steep increase in interest rate beyond the 90% utilization should incentivize more lenders to deposit funds and borrowers to return outstanding loans, bringing the pool back to an optimal level.

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