Risk Disclosure

Last updated: 2026-04-21 • Version 1.0

⚠️ DeFi lending carries substantial risk of total loss of funds. Only deposit what you can afford to lose. Read this document carefully before transacting.

Smart-contract risk

Zeeria's contracts, while tested extensively (110+ unit/fuzz/invariant tests, forthcoming independent audits), may contain bugs that could lead to partial or total loss of user funds. No software is bug-free. You are trusting the code.

Oracle risk

Zeeria relies on Chainlink price feeds (BTC/USD, USDC/USD) on Base. If these feeds malfunction, lag, or are manipulated, liquidations may fire at incorrect prices. We mitigate this with staleness checks (1-hour default) and plan to add TWAP fallback from Uniswap v3 in V2, but residual risk remains.

Liquidation risk

If the USD value of your collateral drops such that your Health Factor falls below 1.0, your position can be liquidated by any market participant. Up to 50% of your debt is repaid in exchange for the equivalent collateral value plus a 5% bonus to the liquidator. Liquidations can happen suddenly during extreme market moves. Maintain a comfortable buffer (HF ≥ 1.5 recommended).

Market risk

Collateral assets (BTC, ETH) are volatile. A 30% drop in BTC can liquidate a position that looked safe an hour ago. Stablecoin depegs (USDC, USDT historically depegged briefly in 2023) can also affect liquidation pricing.

Base L2 risk

Base is an optimistic rollup maintained by Coinbase. In the extremely unlikely event of a Base sequencer outage or fraud-proof failure, bridged assets may become temporarily inaccessible. Base has an official bridge with a 7-day challenge window for withdrawals.

Bridge risk (WBTC)

WBTC is a custodial wrapper of BTC managed by BitGo. If BitGo is compromised, WBTC may de-peg. We plan to support tBTC (trustless alternative) in V2.

Regulatory risk

DeFi regulations are evolving globally. Rules may change in ways that restrict or prohibit access from your jurisdiction. Zeeria is operated by Intermo PSP FZCO, a UAE free-zone company registered with the Dubai Multi Commodities Centre (DMCC licence DMCC203932). Intermo PSP FZCO is not a licensed bank, broker, money transmitter, or virtual asset service provider under any regime, and the Zeeria protocol is offered on a non-custodial basis that does not require such licensing. Nothing here constitutes investment advice under any jurisdiction's securities laws.

Operational risk

The Zeeria website, API, and indexer may experience downtime. Smart contracts on Base remain accessible directly even if our app is down — you can interact via Basescan or any Ethereum-compatible tool.

Interest-rate risk

Borrow APR is variable. During high utilization, rates can spike above 100% APR (the kinked curve is designed to discourage over-utilization). Monitor your position.

No insurance

Zeeria is not insured by any government or private scheme. Your funds are not FDIC-insured, SIPC-protected, or similar. We plan to integrate Nexus Mutual cover options for users who want additional protection, at the user's expense.

Network and token disclaimer

The current deployment uses test variants of WBTC, USDC, and Chainlink-style price feeds that can be minted freely from the welcome bonus page. These tokens are intended for product validation and are not redeemable for real Bitcoin or USDC. Nothing displayed in the application constitutes a position, investment, or obligation of any kind. Use the application as a way to evaluate the protocol's mechanics before depositing material capital.