# Disclaimer

# General DeFi Risks

The transactions you can perform using the Leech protocol (“Leech”) are superficially similar to traditional financial transactions, but in fact they are very different.
DeFi has unique costs and benefits, risks and protection mechanisms. Please keep this fact in mind when using this website and do not use Leech or any other system described on this website without a sufficient understanding of their unique risks and how they differ from traditional financial transactions.
The only way to fully understand such risks is to have a clear understanding of the relevant technical systems and the incentive design mechanisms they embody.
We recommend you to read the technical documentation and the Leech code before using them, and avoid depositing or lending more than 10-30% of your funds for DeFi protocols, including Leech.

# Smart Contracts Failures

Leech smart contracts are open source, readable, and include tests. They are not a direct fork of an existing contract system. Two audits of the smart contracts have already been successfully completed by Hacken OÜ. However, a successful audit does not guarantee that a new or existing Leech strategy will achieve APY goals or avoid Leech hacks or contracts with which Leech integrates (Curve, Pancake Swap, Uniswap, Venus, Yieldyak etc.). Also be aware that the current version of Leech protocol is a beta version and as such the above risks are even higher.

Although Leech team has developed most of the source code for the Leech protocol, it does not provide, own or control the Leech protocol,
which is managed by smart contracts deployed on the BSC blockchain and Avalanche. Accordingly, no developer or entity involved in the creation of the Leech protocol will be liable for any claim or loss arising from your use, inability to use or your interactions with other users of the Leech protocol, including any direct, indirect, incidental, special, exemplary, punitive or consequential damages or lost profits, cryptocurrency, tokens or anything else of value.

# Composability Risks

Leech protocol manage many different assets and interact with many other protocols. This ability to link contracts gives Leech its value, but interacting with multiple contracts creates a risk if one of the contracts fails. Leech does its best to audit and assess the risks of the contracts Leech handles, but deposits are subject to the risks inherent in each strategy. Study the strategies used by the vaults in which you deposit to familiarize yourself with the risks.

We also highlight that transactions via protocols and contracts may be subject to additional third-party fees, such as cross-chain bridge fees or stablecoin exchange fees.

# Rug Pull Risks

If the team behind a token, either whitelisted or not, decides to abandon its project and takes the investors’ money, the project’s token will probably be worth $0. You are responsible for doing your own due diligence of the project and should understand that crypto are very-high risk, speculative investments. You should be aware and prepared to potentially lose some or all of the money invested.

# Rate

The stated APR or APY for a given token, vault or strategy (‘Rate') is expressed in units of the specific token in question, not in U.S. dollars or other fiat currencies. Each Rate is a forward-looking prediction based on a good faith belief as to how to reasonably predict results over the relevant period, but such belief is subject to numerous assumptions, risks and uncertainties (including smart contract security risks and third party actions) that could result in a material change (lower or higher) in APR or APY denominated in tokens. Rates are not offers, promises, agreements, guarantees or commitments by any person or group, but depend primarily on the performance of smart contracts and other autonomous or semi-autonomous systems (including third-party systems) and how third parties interact with those systems after you make a deposit. Even if a particular predicted Rate is achieved, you may still incur a financial loss in fiat money if the fiat money denominated value of the relevant tokens (your deposit and any tokens allocated or distributed to you in accordance with the Rate) declines during the term of the deposit. APR and APY are not interest rates payable on debt.

# Asset Risks

Stablecoins are not necessarily stable. Stablecoins and synthetics can depeg from their target price and you can lose in value. Leech interacts with many stablecoins and synthetic representations of other assets. These assets may depend on collateral from other digital assets (DAI, sUSD, sBTC etc.) or may be bearer bonds that can only be redeemed for the underlying asset with a centralized third party (USDC, USDT, wBTC etc.). If the issuer blacklists the non-bearer asset or the synthetic asset becomes insufficiently collateralized, your positions holding or interacting with those assets may lose value or even become worthless.

# Automated Market Maker Risks

Impermanent loss (or Divergence Loss) is associated with providing assets to a liquidity pool. Liquidity pools are used on decentralized exchanges, such as Uniswap or Curve, to create money markets and allow traders to buy and sell pool-supported assets. If you contribute liquidity funds to an automated market maker, you may lose some or all of the amount you invested if the relative value of assets in the automated market maker changes. If even one of the assets in the pool depreciates or becomes worthless, your entire position in the pool, regardless of the assets you originally provided when you entered the pool, may lose value or become worthless.If you provide liquidity to the pool and one of the assets increases in value relative to others in the pool, you may not make as much money as you could have if you had held those assets instead of placing them in the pool. It is critical to understand the mathematics of impermanent losses before providing liquidity. Many yield farming strategies, including the yield farming strategies used by Leech, provide incentives to provide liquidity in AMMs. These incentives do not guarantee that providing liquidity will be profitable for you.

# Mixed pools Mechanics

All our mixed pools will consist of several pairs. For instance, we might add five medium-risk pairs to a high-risk pool. We implement this to enable liquidity reallocation among pairs on platforms like Velodrome in search of the most profitable conditions. At the moment, we have added one token pair to each mixed pool. Mixed pool (medium risk) is a liquidity mining strategy on the Optimism network, utilizing Velodrome DEX. The strategy includes farming on highly profitable stablecoin pairs such as LUSD / MAI. Mixed pool (low risk) is a liquidity mining strategy on the Optimism network, utilizing Sushiswap DEX. The strategy includes farming on low risk stablecoin pairs such as USDT / USDC.

# ***

The Leech team is not responsible for the consequences of using Leech by you from a jurisdiction that restricts or prohibits the use of cryptocurrency, tokens, DeFi protocols or smart contracts and we recommend that you stop using Leech from such jurisdiction. We also recommend to seek a professional legal advice prior to using our protocol in your place of residence.

This Disclaimer can be found at here . Due to constant changes and tendencies arised in the cryptocurrency market, including and especially in DeFi, that cause and create new measures to be taken and conditions for us and you when using DeFi protocols and services, and also due to the continuous development of Leech Protocol, we are forced to make modifications to this document from time to time, which you will be notified about immediately upon visiting our website with the opportunity to review and agree to the new version of the document. We also recommend you to monitor such modifications yourself and if at any point you do not agree with the new changes, we suggest that you stop using Leech.

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