Risk Disclosures

Participating in Decentralized Finance (DeFi) and using platforms like Interstable and its future aiUSD stablecoin involves various risks. While we strive to mitigate these risks through careful design, AI-driven analysis, and robust security practices, it is crucial for users to understand that these risks cannot be entirely eliminated.

Please carefully consider the following before interacting with Interstable or any DeFi product:

1. Smart Contract Risk:

   • All software, including smart contracts, can have bugs or vulnerabilities. Despite rigorous audits, there's always a possibility of an undiscovered flaw in Interstable's own smart contracts or in the smart contracts of the third-party DeFi protocols that AIxFI analyzes and aiUSD will interact with. An exploit could lead to a partial or total loss of funds.

2. Market Risk & APY Volatility:

   • Yields (APYs) in DeFi are not guaranteed and can be highly volatile, influenced by market demand, token prices, protocol usage, and overall crypto market conditions. The APY generated by aiUSD will fluctuate.

   • Past performance of strategies identified by AIxFI or achieved by aiUSD is not indicative of future results.

3. Stablecoin Peg Risk (for underlying assets):

   • aiUSD will be backed by a basket of other stablecoins. While we will select reputable, well-backed stablecoins, there is always a risk that one or more of these underlying stablecoins could lose their peg to their target fiat currency (e.g., the US Dollar). This could impact the value of aiUSD's backing.

4. Liquidity Risk:

   • aiUSD

   • Redemption: While aiUSD aims to offer strong liquidity, portions of its underlying assets may be allocated to strategies with defined lock-up periods to achieve higher yields. In such cases, the ability to instantly redeem the entire aiUSD supply might be constrained by these lock-ups. The liquid portion will remain redeemable, but locked portions will be subject to their unlock schedules. This will be transparently communicated.

   • Underlying Protocol Liquidity: The DeFi protocols aiUSD interacts with might experience their own liquidity shortages, potentially delaying withdrawals from those specific protocols.

5. Third-Party Protocol Risk:

   • AIxFI analyzes and aiUSD will interact with various external DeFi protocols. These protocols have their own teams, governance, and risks. Interstable cannot control these external protocols. An issue with an underlying protocol (e.g., hack, rug pull, critical bug, governance failure) could impact funds deployed there.

6. AI & Algorithmic Risk:

   • AIxFI's AI engine relies on data analysis and algorithms. While designed to optimize for risk-adjusted returns, no AI is infallible. Unexpected market conditions or flaws in data/algorithms could lead to suboptimal decisions.

   • The initial MVP version of AIxFI involves human oversight for rebalancing suggestions. Future automation will be phased in carefully.

7. Regulatory Risk:

   • The regulatory landscape for cryptocurrencies, stablecoins, and DeFi is still evolving and varies significantly by jurisdiction. Future regulations could impact Interstable's operations or the use of aiUSD.

8. No Financial Advice:

   • Information provided by Interstable and AIxFI (especially during the MVP showcase phase) is for informational and educational purposes only. It does not constitute financial advice, investment advice, or a recommendation to buy, sell, or hold any asset.

Your Responsibility:

• You are responsible for understanding the risks involved.

• Never invest more than you can afford to lose.

• Always conduct your own thorough research (DYOR) before engaging with any DeFi product.

Interstable is committed to transparency and will strive to provide clear information to help users make informed decisions.