Risk Disclosure
Risk disclosure for Hann Finance users
This page summarizes the major risks to consider before using Hann Finance (borrowing, holding USDHN, swapping, LP, and automation).
Not investment advice — This documentation is educational. DeFi involves risks and losses are possible.
At a glance
Borrowing can lead to liquidation and loss of collateral.
USD-pegged assets can depeg; redemptions are a mechanism, not a guarantee.
Swaps and LP can lose value due to slippage and pool imbalance/depegs.
LST collateral can have unbonding delays and secondary-market liquidity risk.
Yield-bearing receipt tokens (vault shares) can add share-price and redemption/cooldown risk.
Cross-chain bridging (OFT) adds cross-chain messaging and bridge configuration risk.
Smart contracts, oracles, and integrations can fail.
Key risks by activity
Liquidation risk: CR can fall due to price moves, debt growth, or execution.
Redemption risk: depending on protocol rules, your Trove may be affected by redemptions.
Collateral dependency risk: some collateral types are wrappers/shares; their value and exit liquidity can depend on external protocols.
Variable parameters: thresholds and fees can differ by collateral branch and deployment.
Use the official UI for current parameters and always maintain a safety buffer.
Peg risk: USDHN can trade above or below $1.
Liquidity risk: exiting large size can incur slippage or fail if liquidity is thin.
Protocol risk: peg-defense mechanisms can be limited under stress.
You may receive collateral instead of pure USDHN during liquidations.
Returns are variable and depend on protocol activity and market conditions.
Smart contract and oracle risk applies.
Depeg risk: stable pools assume assets stay near parity.
Slippage and MEV can cause worse execution.
LP positions can lose value, especially under sustained imbalance.
One-click flows increase composability risk (more contracts, more failure modes).
Slippage limits and deadlines are critical.
Approvals/signatures can be abused if you sign to the wrong contract.
User safety checklist
Use only official links and verified contract addresses.
Start small when using leverage, loops, or one-click flows.
Track your CR and have a plan to repay USDHN if the market moves.
Set realistic slippage limits and short deadlines for swaps.
Assume smart contracts can fail and size positions accordingly.
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