Risks

Although we take a multitude of safety precautions, farming and participating in DeFi comes with certain risks. Below, we discuss the potential risks associated with using PLAY Finance

Smart Contract Risks

• ⚠️ Risk:

  • Every smart contract, even with the 3rd party audit, could theoretically have vulnerabilities.

While we do our best to eliminate all the possible risks, DeFi is an industry where events that no one predicted can occur. So please don’t invest your life savings, or risk assets you can’t afford to lose. Try to be as careful with your funds as we are with our code. 😊

3rd Party Service Risks

• ⚠️ Risk:

  • User deposit is actually deposited and managed by Alpaca Finance and Pancake Swap, except PLAY, PLAY-wBNB LP, and event pools such as Bunny Pool.

  • Cake gaming pool is managed by Pancake Swap, and all the others are managed by Alpaca Finance "Lending" pools.

  • Even if PLAY Finance protected and managed the contract without vulnerability, user still has a risk related to these 3rd party DeFi services that actually manages principal and interest.

Although user need to bear the risk of 3rd party services, as known well in this industry, those two services are trustworthy who are managing and updating their service very well.

If you really care about this 3rd party service risk, you would rather invest with PLAY, PLAY-BNB or event pools that is managed by PLAY Finance, not using other services.

Risks to LP Yield Farmers

Impermanent Loss (IL):

• ⚠️ Risk:

  • Risk of (impermanent) capital loss from asset rebalancing in the Automated Market Maker ("AMM") pool.

  • You can be exposed to this risk with depositing PLAY-wBNB LP gaming pool due to AMM rebalancing.

• ℹ️ Mitigation:

  • Impermanent loss is not unique to PLAY Finance. It is common among all yield farming and AMMs.

  • To avoid this risk fundamentally, please avoid to deposit PLAY-wBNB gaming pool. This risk cannot be guaranteed by PLAY Finance at all.