What are the risks of using the RealFi protocol?

Participation in the RealFi protocol involves several categories of risk that prospective users should understand before participating.

• Smart contract risk is the possibility that the protocol's code contains undiscovered vulnerabilities that could result in loss of funds.

• Peg risk is the possibility that USDrf could deviate from its target value due to market stress or arbitrage failure.

• Reserve risk is the possibility that the underlying portfolio underperforms or experiences defaults that reduce the value of sUSDrf.

• Regulatory risk is the possibility that future regulatory developments affect the protocol's ability to operate in a jurisdiction or change the legal classification of the tokens.

• Liquidity risk is the possibility that redemption queues, market liquidity, or circuit breaker activations prevent timely exit.

• Counterparty risk is the possibility that protocol service providers, custodians, or borrowers in the underlying portfolio fail to perform their obligations.

• Technology risk is the possibility that protocol infrastructure, including the Cardano blockchain and supporting systems, experiences outages or failures.

• sUSDrf holders additionally absorb portfolio losses before USDrf holders are affected. USDrf and sUSDrf are not bank deposits and are not insured. Capital is at risk.