⚠️ Known Risks
Known Risks
While MALGIST is designed to improve transparency and decision-making in DeFi, all users should understand that risks cannot be fully eliminated.
Below are the key risks that users should be aware of when interacting with MALGIST.
1. Smart Contract Risk
MALGIST relies on smart contracts deployed on the Mantle Network.
Potential risks include:
Undiscovered bugs or vulnerabilities
Unexpected edge cases during execution
Dependency on external contract behavior
Although best practices and audits are prioritized, smart contracts are never risk-free.
2. Protocol Risk
Strategies executed through MALGIST interact with external DeFi protocols.
Risks may arise from:
Protocol upgrades or governance changes
Liquidity issues
Exploits or failures in third-party protocols
MALGIST does not control these external protocols.
3. Market Risk
DeFi strategies are exposed to market conditions.
This includes:
Asset price volatility
Impermanent loss
Changes in yield or incentives
Sudden market movements
Even low-risk strategies can experience losses under extreme conditions.
4. Strategy Design Risk
Each strategy is defined by its logic and parameters.
Possible risks:
Suboptimal allocation choices
Assumptions that no longer hold over time
Complexity increasing failure probability
Users are encouraged to review strategy details carefully before depositing.
5. AI & Analytics Limitations
If AI-driven insights or analytics are provided:
They are informational only
They may be incomplete or outdated
They do not predict future outcomes
AI does not guarantee profitability and should not be treated as financial advice.
User Responsibility Notice
By using MALGIST, users acknowledge that:
They understand the associated risks
They retain full control over their assets
They are responsible for their own decisions
MALGIST aims to surface risks, not hide them.
➡️ Next: Governance & Economics — how decisions, reviews, and incentives are managed within the protocol.
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