Types of Risk

The main forms of risk are:

  • Credit Risk — You are in control of who you trust in the protocol, and if they don't repay .

  • Contract Risk — The union protocol is software, and while all efforts were taken to try and write safe software there is the risk of a bug in the code.

  • User Risk — Unions smart contracts are permissionless and they're deployed on ethereum which is also permissionless, as such any loss of funds due to user error is likely irreversible.

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