General Risk Disclosures

General Risk Disclosures for Unipay Unipay operates as a decentralized financial protocol and makes no guarantees regarding the performance or outcome of its services. By interacting with Unipay, you acknowledge and accept the risks associated with the protocol, its stablecoin USDu, and related services. The following disclosures aim to highlight key risks; however, they may not be exhaustive.

Market Volatility

USDu is backed by crypto assets such as SOL, ETH, and BTC, which are inherently volatile. Significant fluctuations in market prices may affect the backing of USDu, potentially causing deviation from its intended peg.

Liquidity Risk

The ability to mint, redeem, or transact USDu depends on liquidity in both decentralized and centralized markets. Extreme market conditions or liquidity shortages could impede these operations.

Funding Rate Risk

The delta-neutral strategy employed by Unipay relies on perpetual futures funding rates. Adverse funding rate conditions, such as prolonged negative rates, could diminish or eliminate protocol-generated yields, impacting user returns.

Smart Contract and Program Risk

Unipay operates on both Solana and Ethereum using smart contracts and programs. Despite rigorous audits and security measures, vulnerabilities, bugs, or exploits in the code may result in unintended outcomes, including loss of funds.

Counterparty and Custodial Risk

Unipay utilizes Off-Exchange Settlement (OES) platforms such as Copper and Ceffu to bridge decentralized and centralized markets. These custodians and exchanges are subject to operational risks, insolvency, or security breaches, which could impact user assets.

Regulatory and Compliance Risk

Stablecoins and DeFi protocols exist within an evolving regulatory landscape. Regulatory changes, enforcement actions, or restrictions in certain jurisdictions may disrupt Unipay’s operations or limit access to the protocol.

User Responsibility

Users are responsible for safeguarding their private keys and wallet credentials. Unipay cannot recover funds lost due to user error, unauthorized access, or mismanagement.

Blockchain Network Risk

As Unipay runs on Solana and Ethereum, its functionality depends on the performance of these networks. Issues such as congestion, downtime, or changes in network protocols may affect the protocol’s operations.

Systemic Risk

The interconnected nature of decentralized finance means vulnerabilities or failures in other protocols, collateral assets, or integrated systems could have cascading impacts on Unipay.

Important Note This document is provided for informational purposes only and does not constitute financial advice or guarantees. By using Unipay, you agree that the protocol, its team, and associated entities are not liable for losses resulting from the above risks. For further inquiries, contact [e-mail].