Risk Disclosure
Last updated 7 October 2026 · Version 2026-10-07
Draft, pending legal review. Items in brackets are still to be confirmed.
Interest rate swaps on a blockchain carry real risks. Read these before you use the Services. Using them means you understand and accept these risks.
Beta on a test network
The Services run on Base Sepolia, a test network, with tokens of no value. They are not ready for real funds and may change, pause or be redeployed at any time.
No audit yet
No third-party security audit of the smart contracts has been completed. They may contain bugs that cause loss of funds.
Smart contracts and fixed parameters
Transactions are executed by smart contracts and cannot be reversed. A market's pricing parameters are fixed when it is deployed and no one can change them; a mistake in them is corrected by deploying a new market, not by editing the old one.
Your underlying loan
A swap fixes the rate on a loan; it does not protect the loan itself. Your loan stays on its lending protocol and remains subject to that protocol's rules, including liquidation if your collateral falls in value.
Rate risk
If you hedge a loan, you pay the fixed rate even when the variable rate falls below it. If you supply liquidity, you pay the variable rate: when it rises above the fixed rate your swaps pay out more than they take in, and you can lose money.
Liquidity and exits
Withdrawing supplied capital is limited by how much of a market is in use. You may not be able to withdraw when you want to.
Settlement and operations
Swaps settle through services we operate, such as the quoter and the settlement keeper. If they are delayed or offline, settlement can be delayed.
Third parties and regulation
The Services depend on third-party lending protocols, wallets, RPC providers and networks, any of which can fail. Laws on digital assets and derivatives vary and change; it is your responsibility to know whether you may use the Services where you are.