Lending and borrowing digital assets carries real risk, including losing some or all of your funds. Kedar is designed to contain risk, not remove it. Please read this before using Kedar when it launches.
The short version
- You can lose money lending or borrowing on Kedar.
- Digital assets aren't bank deposits, and they aren't insured by the FDIC or protected by SIPC.
- Smart contracts can have bugs, even after audits.
- Nothing on this site is investment advice.
Smart contract risk
Kedar runs on code. Audits and careful design reduce the chance of bugs but can't remove it. A flaw in Kedar's contracts, in Canton or in software they depend on could lead to the loss of funds.
Liquidation risk for borrowers
If the value of your collateral falls or your debt grows, and your position crosses its market's liquidation LTV, part or all of your collateral can be sold to repay your debt, at a bonus paid to the liquidator. Prices can move faster than you can react. Borrowing well below the limit reduces, but doesn't remove, this risk.
Risk for lenders
If collateral falls in value faster than liquidations can happen, a market can end up with bad debt, and its lenders bear the loss. Isolated markets limit this to the market you lend to, but within that market the loss is real. When borrowing demand is high, you may not be able to withdraw immediately until loans are repaid or new deposits arrive.
Price oracle risk
Each market relies on a price feed. If a feed is wrong, delayed or manipulated, positions could be liquidated unfairly or bad debt could build up. A market's oracle is fixed when it's created, so its quality is part of the risk you take on.
Vault and curator risk
If you deposit into a vault, a curator decides which markets your funds go to, within published caps. A curator can make poor choices. Time-locks give you a chance to withdraw before changes take effect, but only if you're watching.
Asset risk
Stablecoins like USDCx can lose their peg. CC, CBTC and cETH can fall sharply in price. CBTC and cETH represent bitcoin and ether on Canton, so their value also depends on the systems that hold and bridge the underlying assets.
Network and privacy
Kedar depends on the Canton Network and the parties that operate it. Outages, upgrades or changes to Canton could delay transactions or liquidations. Canton keeps positions private from the public, but the parties to your market can see them.
Regulation and tax
The law on digital assets and decentralised lending is changing. A change could limit or end Kedar's availability where you live. You're responsible for any taxes on your activity.
Scams
We will never ask for your recovery phrase or private keys, or ask you to send funds to verify a wallet. Only trust links from kedar.finance. If something looks wrong, email aston@kedar.finance before you act.