diff --git a/apps/loan/src/components/PageDisclaimer/Page.tsx b/apps/loan/src/components/PageDisclaimer/Page.tsx
index 96057c80d..3f2cef547 100644
--- a/apps/loan/src/components/PageDisclaimer/Page.tsx
+++ b/apps/loan/src/components/PageDisclaimer/Page.tsx
@@ -1,6 +1,6 @@
import type { NextPage } from 'next'
-import { t } from '@lingui/macro'
+import { t, Trans } from '@lingui/macro'
import { useLocation, useNavigate, useParams } from 'react-router-dom'
import { useEffect } from 'react'
import styled from 'styled-components'
@@ -9,9 +9,22 @@ import { breakpoints } from '@/ui/utils/responsive'
import { scrollToTop } from '@/utils/helpers'
import usePageOnMount from '@/hooks/usePageOnMount'
+import {
+ RiskWrapper,
+ RiskTitle,
+ RiskSection,
+ RiskSubHeadingWrapper,
+ RiskSubTitle,
+ RiskSubHeading,
+ RiskParagraph,
+ RiskListItem,
+ RiskUnOrderList,
+ RiskOrderList,
+} from '@/ui/RiskDisclaimer/styles'
+import Chip from '@/ui/Typography/Chip'
import DocumentHead from '@/layout/DocumentHead'
+import ExternalLink from '@/ui/Link/ExternalLink'
import Settings from '@/layout/Settings'
-import { ExternalLink } from '@/ui/Link'
const Page: NextPage = () => {
const params = useParams()
@@ -27,57 +40,416 @@ const Page: NextPage = () => {
<>
- {t`Risk Disclaimer`}
-
- Curve Stablecoin infrastructure enables users to mint crvUSD using a selection of crypto-tokenized collaterals
- (adding new ones are subject to DAO approval). Positions are managed passively: if the collateral's price
- decreases, the system automatically sells off collateral in a ‘soft liquidation mode’. If the
- collateral's price increases, the system recovers the collateral. This process could lead to some losses
- due to liquidation and de-liquidation. Additional information can be found on{' '}
- LLAMMA Overview.
-
-
- Please consider the following risk disclaimers when using the Curve Stablecoin infrastructure:
-
-
-
-
- -
- If your collateral enters soft-liquidation mode, you can't withdraw it or add more collateral to
- your position.
-
- -
- Should the price of the collateral change drop sharply over a short time interval, it can result in
- large losses that may reduce your loan's health.
-
- -
- If you are in soft-liquidation mode and the price of the collateral goes up sharply, this can result in
- de-liquidation losses on the way up. If your loan's health is low, value of collateral going up
- could potentially reduce your underwater loan's health.
-
- -
- If the health of your loan drops to zero or below, your position will get hard-liquidated with no option
- of de-liquidation. Please choose your leverage wisely, as you would with any collateralized debt
- position.
-
-
-
-
- The crvUSD stablecoin and its infrastructure are currently in beta testing. As a result, investing in crvUSD
- carries high risk and could lead to partial or complete loss of your investment due to its experimental
- nature. You are responsible for understanding the associated risks of buying, selling, and using crvUSD and
- its infrastructure.
-
-
- The value of crvUSD can fluctuate due to stablecoin market volatility or rapid changes in the liquidity of
- the stablecoin.
-
-
- crvUSD is exclusively issued by smart contracts, without an intermediary. However, the parameters that
- ensure the proper operation of the crvUSD infrastructure are subject to updates approved by Curve DAO. Users
- must stay informed about any parameter changes in the stablecoin infrastructure.
-
-
+
+ {t`Risk Disclaimer`}
+
+
+
+ Curve stablecoin infrastructure enables users to mint crvUSD using a selection of crypto-tokenized
+ collaterals (adding new ones is subject to DAO approval). Interacting with crvUSD doesn't come
+ without risks. Before minting or taking exposure of crvUSD, it is best to research and understand the
+ risks involved.
+
+
+
+
+
+ {t`crvUSD Whitepaper`}
+
+
+
+ {t`crvUSD smart contract Audits`}
+
+
+
+
+
+ {t`crvUSD Design Risks`}
+
+
+ crvUSD has unique design features that Users should fully understand before interacting with the
+ protocol.
+
+
+
+
+
+ {t`Soft-Liquidation and Hard-Liquidation`}
+
+
+ Collateralized debt positions are managed passively through arbitrage opportunities: if the
+ collateral's price decreases, the system automatically sells off collateral to arbitrageurs in
+ a ‘soft-liquidation mode’. If the collateral's price increases, the system recovers the
+ collateral. This algorithm is designed to dynamically adjust the collateral backing each crvUSD in
+ real-time, responding to fluctuating market conditions. While this approach is intended to mitigate
+ the severity of traditional liquidations—a process where collateral becomes insufficient, leading to
+ irreversible sales at potentially undervalued prices—it does not eliminate the inherent risk of
+ collateral volatility. Additional information can be found on{' '}
+
+ LLAMMA Overview
+
+ .
+
+
+
+
+
+ Borrowers in the crvUSD ecosystem are subject to specific risks associated with the liquidation
+ process. It is crucial to understand that if the User’s collateral is placed into soft-liquidation
+ mode, they are prohibited from withdrawing the collateral or augmenting their position with
+ additional collateral. Entering soft-liquidation mode locks the collateral, removing the option to
+ withdraw or add to it. In case market conditions suggest a strategic adjustment to the User’s
+ position, they may face exacerbated risk due to such restrictions.
+
+
+
+
+
+ Users should be cautious about collateral management, as a sharp decline in the price of the
+ collateral within a brief period can escalate losses, further deteriorating the health of the loan.
+ Respectively, an increase in the collateral's value while in soft-liquidation can also cause
+ “de-liquidation losses” - a situation where an appreciating market price for the collateral may
+ negatively impact the loan’s health. During periods of high volatility and/or high Ethereum gas
+ prices, arbitrage may be less efficient, causing losses incurred from soft liquidation to be
+ exacerbated.
+
+
+
+
+
+ If the health of the loan falls to zero, the position is subject to hard liquidation, which is an
+ irreversible process resulting in the loss of the collateral with no possibility of recovery or
+ de-liquidation. This scenario underscores the critical need for risk management when using leverage.
+ Leverage and collateral management should be approached with caution, reflecting a balanced
+ assessment of potential gains against the risk of significant financial loss.
+
+
+
+
+
+ {t`Curve Pool EMA Oracles`}
+
+
+ Curve incorporates specialized on-chain Exponential Moving Average (EMA) oracles built into
+ stabelswap-ng, tricrypto-ng, and twocrypto-ng Curve pool implementations. crvUSD markets derive
+ price information from a select number of high TVL Curve pools. By utilizing the EMA smoothing
+ methodology, oracles mitigate the impact of transient price fluctuations, aiming to reduce
+ unnecessary losses caused by short-term market volatility or attempts to manipulate the oracle.
+ Despite the manipulation-resistant design specification, Curve pool oracles may exhibit price
+ distortions in certain scenarios that have the potential to result in missed or excessive
+ liquidations. This may be a result of liquidity and volume migration to alternate venues that
+ increase the risk of oracle manipulation. A detailed explanation of the aforementioned terms can be
+ found in the{' '}
+
+ crvUSD Oracle
+ {' '}
+ documentation.
+
+
+
+
+
+ {t`Pegkeepers`}
+
+
+ crvUSD makes use of Pegkeepers, contracts authorized to deposit and withdraw crvUSD from a
+ whitelisted Curve crvUSD stableswap pool up to a predefined debt cap. These contracts reference a
+ subset of whitelisted stablecoins as a proxy for the intended USD price. Instability affecting any
+ counterparty Pegkeeper assets (e.g. USDT, USDC), which are also used to aggregate a USD price for
+ crvUSD, may cause the Pegkeeper to deposit all of its crvUSD into the pool in an attempt to
+ rebalance. This creates a dependency on the Pegkeeper counterparty assets that determines the
+ stability of the crvUSD peg. An upgraded PegkeeperV2 design promises to alleviate this risk.
+
+
+
+
+
+ {t`Dynamic Interest Rates`}
+
+ The borrowing rate is algorithmically determined based on several factors, including
+
+
+
+
+
+ the crvUSD price as reported by an on-chain price aggregator contract,
+
+
+ the ratio of Pegkeeper debt to total outstanding debt,
+
+
+ several variables set by the Monetary Policy admin
+
+
+
+
+
+ Essentially, the borrow rate increases when the price of crvUSD goes lower and/or the proportion of
+ Pegkeeper debt to total debt reduces. This process is intended to dynamically regulate market
+ behavior such that it reinforces the crvUSD peg. Changes to the Monetary Policy are authorized only
+ by the Curve DAO. A{' '}
+
+ crvUSD rate tool
+ {' '}
+ by 0xReviews allows Users to visualize the influence of these factors on the borrowing rate.
+
+
+
+
+
+ There may be assumptions in the Monetary Policy design that, in some circumstances, cause interest
+ rates to produce undesired outcomes, and which may cause a sub-optimal experience for borrowers. In
+ general, interest rates on borrowing may change dramatically in response to changing market
+ circumstances, and may not reflect a borrower's expectations when they had opened their
+ position.
+
+
+
+
+
+
+
+ {t`Market Risks`}
+
+ {t`Liquidity Risk`}
+
+
+ Users should be aware that ample crvUSD liquidity on exchange is necessary for facilitating
+ liquidations. Circumstances leading to a reduction in the available crvUSD liquidity for liquidators
+ are plausible. Such scenarios can significantly impact the proper functioning of the stablecoin
+ market, particularly concerning the process of liquidation.
+
+
+
+
+ crvUSD relies on liquidity concentrated within particular Pegkeeper pools, which serve a dual purpose
+ as both a source of liquidity and price feeds for crvUSD oracles. If the incentives for depositing
+ crvUSD into these pools are insufficient, the liquidity shortfalls can result in missed liquidations
+ or deflationary price spirals (cascading liquidations). This phenomenon occurs when initial
+ liquidations fail to be executed effectively, leading to a domino effect of further liquidations and
+ potentially rapid, significant decreases in asset prices.
+
+
+
+
+
+ {t`No Guarantee of Price Stability`}
+
+
+ The value of the crypto assets used as collateral for crvUSD is subject to high levels of volatility
+ and unpredictability. The pricing of these assets may be extremely speculative and prone to rapid
+ fluctuations. Such market characteristics can impact the stability of crvUSD’s value. While the LLAMMA
+ algorithm aims to adjust collateral levels to support crvUSD’s value, there is no guarantee that these
+ adjustments will always preserve stability, especially during periods of extreme market volatility.
+
+
+
+
+
+ {t`Depegging Risk`}
+
+
+ The blockchain ecosystem has witnessed instances where stablecoins experienced significant and
+ prolonged periods of depegging from their intended value. Despite the innovative measures designed to
+ uphold price stability, crvUSD is not exempt from the risk of depegging. Market volatility, shifts in
+ regulatory landscapes, sudden and substantial changes in the value of collateral assets, or unforeseen
+ technical issues can precipitate a departure from its pegged value.
+
+
+
+
+
+
+ {t`Technology Risk`}
+
+ {t`Smart Contract Risk`}
+
+
+ crvUSD relies on smart contracts, which are self-executing pieces of code. While these contracts are
+ designed to be secure, there is a risk that they may contain vulnerabilities or bugs. Malicious actors
+ could exploit these vulnerabilities, resulting in the loss of funds or other adverse consequences.
+ Users need to conduct due diligence and review the smart contracts and security audit reports to
+ assess the inherent risks.
+
+
+
+
+ Curve smart contracts have undergone multiple audits by reputable firms, including MixBytes and
+ ChainSecurity, to enhance protocol security. While smart contract audits play an important role in
+ good security practices to mitigate user risks, they don't eliminate all risks. Users should
+ always exercise caution regardless of Curve's commitment to protocol security.
+
+
+
+
+
+ {t`No Loss Prevention`}
+
+
+ crvUSD and its underlying infrastructure are in an early stage of development, are inherently
+ experimental, and carry a significant degree of risk. Engagement with crvUSD during this phase should
+ be approached with the understanding that it may lead to partial or complete loss of funds. Users
+ considering minting, redeeming, or utilizing crvUSD should be prepared for the possibility of
+ encountering technical issues, bugs, or vulnerabilities that could impact the value of crvUSD or the
+ safety of allocated crypto assets.
+
+
+
+
+
+ {t`General Blockchain Technology Risks`}
+
+
+ Engaging with crypto assets involves exposure to a range of technological risks inherent to the use of
+ new and evolving technologies. Users must be aware of key risk factors (as outlined below) and
+ consider their implications for crypto asset transactions.
+
+
+
+
+
+ Irreversibility of Transactions: Once executed, transactions in crypto assets
+ cannot be reversed. Errors or accidental transactions cannot be easily rectified, potentially
+ leading to permanent loss of assets.
+
+
+
+
+ Anonymity: The degree of anonymity provided by blockchain technology can complicate
+ the tracing of funds and the identification of parties in transactions.
+
+
+
+
+ Software Dependencies: Crypto asset operations rely heavily on the flawless
+ functioning of complex software, including wallets, smart contracts, and blockchain networks. Any
+ defects, bugs, or vulnerabilities in software can impair access to or use of crypto assets, leading
+ to potential losses.
+
+
+
+
+ Cybersecurity Incidents: The digital nature of crypto assets makes them a target
+ for hackers, malicious actors, and other cybersecurity threats. Failures, hacks, exploits, protocol
+ errors, and unforeseen vulnerabilities can compromise the security of assets, resulting in theft,
+ loss, or unauthorized access.
+
+
+
+
+ Operational Challenges: The process of recording and settling transactions on a
+ blockchain depends on the network's stability and performance. Disruptions, high transaction
+ volumes, or network congestion can delay settlement times, affecting the liquidity and availability
+ of assets.
+
+
+
+
+
+
+
+ {t`Counterparty Risks`}
+
+
+ {t`Access Control`}
+
+
+ crvUSD markets (Controller smart contracts) are intentionally designed to be immutable and
+ noncustodial, meaning they cannot be upgraded and minters always retain full control and
+ responsibility over their funds. While this characteristic may limit protective actions in case of
+ emergencies, it significantly strengthens user assurances about custody of their funds.
+
+
+
+
+ The crvUSD protocol is governed by a Decentralized Autonomous Organization (DAO) comprised of veCRV
+ tokenholders that requires a 1-week vote period with 51% approval and a sufficient voter quorum to
+ execute any actions. It controls critical system functions, including deploying new crvUSD markets,
+ setting implementation contracts, and setting parameters that influence market behavior.
+
+
+
+
+
+ {t`No Control`}
+
+
+ crvUSD functions in a decentralized way, with its issuance and operational mechanics governed
+ exclusively by smart contracts, without reliance on any intermediaries. While the adjustment of
+ stablecoin critical parameters is subject to Curve DAO approvals, Users must understand that Curve DAO
+ does not act as a broker, agent, advisor, or in any fiduciary capacity towards crvUSD users.
+ Consequently, Curve DAO bears no obligation to ensure that the use of crvUSD aligns with each one’s
+ financial objectives, strategies, or risk tolerance levels.
+
+
+
+
+
+ {t`Developer Dependency`}
+
+
+ The ongoing development, maintenance, and scalability of the crvUSD protocol is dependent on
+ developers' contributions. While numerous developers are currently engaged in the project, there
+ is no assurance that this level of contribution will persist indefinitely. The future involvement of
+ developers is subject to change due to a variety of factors that could influence their capacity or
+ willingness to contribute.
+
+
+
+
+
+
+ {t`Regulatory Risks`}
+
+ {t`Regulatory Uncertainty`}
+
+
+ crvUSD is not recognized as a legal tender by any government authority, central bank, or legal
+ jurisdiction. Users should be aware that the lack of legal tender status means that no statutory,
+ governmental, or corporate entity is obligated to accept the stablecoin as payment for goods,
+ services, debts, or other obligations. The regulatory environment around crypto assets and stablecoins
+ remains fluid and subject to change across jurisdictions. This poses a risk that the legal status of
+ the stablecoin could be altered, potentially affecting its use, transfer, holding, and value.
+
+
+
+
+ {t`No Investment and Legal Advice`}
+
+
+ The data and communications made available on the crvUSD platform, including but not limited to its
+ front-end interfaces, are intended purely for informational purposes and should not under any
+ circumstances be interpreted as constituting investment, financial, trading, legal, or any form of
+ professional advice. The content provided through the crvUSD front-end interface(s) is designed to
+ support users' understanding of the stablecoin, the protocol, and its functionalities, not to
+ guide or influence decision-making regarding investments or financial strategies. Users must be aware
+ that they are the only entity capable of adequately assessing whether an action taken aligns with
+ their financial objectives and circumstances.
+
+
+
+
+
+
+
+
+ Disclaimer: The information provided within this context does not constitute financial, legal, or tax
+ advice personalized to your specific circumstances. The content presented is for informational purposes
+ only and should not be relied upon as a substitute for professional advice tailored to your individual
+ needs. It is recommended that you seek the advice of qualified professionals regarding financial, legal,
+ and tax matters before engaging in any activities on Curve.
+
+
+
+
+
+ For up-to-date risk disclaimer,{' '}
+
+ click here
+
+ .
+
+
@@ -86,54 +458,16 @@ const Page: NextPage = () => {
const Container = styled.div`
margin: 0 auto;
- max-width: 600px; // 500px
- min-height: 40vh;
- padding: var(--spacing-4);
- background-color: var(--table--background-color);
- border: 1px solid var(--box--secondary--border);
-
- @media (min-width: ${breakpoints.sm}rem) {
- margin: 1rem auto;
- }
-
- @media (min-width: ${breakpoints.lg}rem) {
- margin: 3rem auto;
- }
-
- p,
- ol,
- li {
- padding: revert;
- margin: revert;
- }
-
- ol {
- padding-left: 1.0625rem; // 17px
- }
+ max-width: var(--width);
+ min-height: 50vh;
- li {
- margin-bottom: 0.5rem;
+ @media (min-width: 46.875rem) {
+ margin: 1.5rem 0;
}
-`
-
-const Title = styled.h1`
- font-size: var(--font-size-7);
-`
-
-const DisclaimerItem = styled.li`
- list-style: revert;
- list-style-position: revert;
- > ol > li {
- list-style: lower-alpha;
- list-style-position: revert;
+ @media (min-width: ${breakpoints.lg}rem) {
+ margin: 1.5rem;
}
`
-const StyledExternalLink = styled(ExternalLink)`
- text-transform: initial;
-`
-
-const DisclaimerItems = styled.ol``
-
export default Page