DeFi Access:
Risk framework
Best-in-class risk management is a core business
strategy that is integrated throughout our company.
Backed by
Meaningful change must be sustainable.
Through a considered approach, Block Earner helps businesses invest in economic progress.
Our innovative use of blockchain technology gives businesses the cutting-edge infrastructure to grow and preserve capital with confidence.
- Charlie Karaboga, Co-founder & CEO
- Jordan Momtazi, Co-founder & CSO
Risks and Considerations
Asset Volatility
Risk of significant or a total loss on an entity's crypto asset holdings due to asset volatility. This risk varies between cryptocurrency assets.
Counterparty
If Block Earner or a 3rd party becomes insolvent, is hacked or is exploited by a malicious actor, your funds may be at risk, and you may incur partial or total loss of your cryptocurrency.
Market
Risk of loss on financial investments caused by adverse price movements. In cryptocurrency markets, this may be compounded by the liberal use of leverage.
Price Stability
Block Earner does not control the issuance or redemption of USD Coin and cannot guarantee that 1 USD Coin will remain pegged to 1 USD. Cryptocurrencies including Pax Gold, Wrapped Bitcoin and Ethereum are subject to sudden, volatile price swings.
Regulatory
Risk of regulatory intervention or breaches may lead to business issues and uncertainty. This is particularly relevant as the industry is relatively new and rules continue to evolve.
Operational
Risk of loss caused by flawed or failed processes, policies, systems or events that disrupt business operations; employee errors and criminal activities such as fraud.
Liquidity
Risk that a market’s supply is completely borrowed out, and suppliers, that typically are able to supply and withdraw funds at will, are not able to withdraw all of their funds on demand.
Smart Contract
Risk that the protocol has a bug or exploit that a malicious actor could use for any possibility, including withdrawing all your cryptocurrency assets in the protocol affected.
Liquidity
Risk that a market’s supply is completely borrowed out, and suppliers, that typically are able to supply and withdraw funds at will, are not able to withdraw all of their funds on demand.
Smart Contract
Risk that the protocol has a bug or exploit that a malicious actor could use for any possibility, including withdrawing all your cryptocurrency assets in the protocol affected.
Asset Volatility
Risk of significant or a total loss on an entity's crypto asset holdings due to asset volatility. This risk varies between cryptocurrency assets.
Counterparty
If Block Earner or a 3rd party becomes insolvent, is hacked or is exploited by a malicious actor, your funds may be at risk, and you may incur partial or total loss of your cryptocurrency.
Market
Risk of loss on financial investments caused by adverse price movements. In cryptocurrency markets, this may be compounded by the liberal use of leverage.
Price Stability
Block Earner does not control the issuance or redemption of USD Coin and cannot guarantee that 1 USD Coin will remain pegged to 1 USD. Cryptocurrencies including Pax Gold, Wrapped Bitcoin and Ethereum are subject to sudden, volatile price swings.
Regulatory
Risk of regulatory intervention or breaches may lead to business issues and uncertainty. This is particularly relevant as the industry is relatively new and rules continue to evolve.
Operational
Risk of loss caused by flawed or failed processes, policies, systems or events that disrupt business operations; employee errors and criminal activities such as fraud.
Liquidity
Risk that a market’s supply is completely borrowed out, and suppliers, that typically are able to supply and withdraw funds at will, are not able to withdraw all of their funds on demand.
Smart Contract
Risk that the protocol has a bug or exploit that a malicious actor could use for any possibility, including withdrawing all your cryptocurrency assets in the protocol affected.
Asset Volatility
Risk of significant or a total loss on an entity's crypto asset holdings due to asset volatility. This risk varies between cryptocurrency assets.
Counterparty
If Block Earner or a 3rd party becomes insolvent, is hacked or is exploited by a malicious actor, your funds may be at risk, and you may incur partial or total loss of your cryptocurrency.
Risk framework
Low
Very Safe, the chance of loss on deposits is low. Indicates the highest level of confidence that the product can provide investors with well-managed risk-adjusted returns and capital security.
Weighting
| Regulatory | Operational | Liquidity | Asset Volatility | Smart Contract | Counterparty | Market | Price Stability | |
|---|---|---|---|---|---|---|---|---|
 Pax Gold | ||||||||
 Aave | ||||||||
 Compound | ||||||||
 USD Coin | ||||||||
 Wrapped Bitcoin | ||||||||
 Ethereum |
- Low Risk
- Medium Low Risk
- Medium Risk
- Medium High Risk
- High Risk
- Not Applicable Risk
Risks and Considerations
DeFi-Access Product
There is a high chance of depositor loss in extreme market conditions. Indicates the product may provide investors with well-managed risk-adjusted returns and capital security.
Buy, Hold & Sell Product
Safe, the chance of loss to depositors is low. Indicates a very strong level of confidence that the product can provide investors with well-managed risk-adjusted returns and capital security.
DeFi-Access Product
Safe, the chance of loss to depositors is low. Indicates a very strong level of confidence that the product can provide investors with well-managed risk-adjusted returns and capital security.
DeFi-Access Product
There is a small chance of depositor loss in extreme market conditions. Indicates a strong level of confidence that the product can provide investors with well-managed risk-adjusted returns and capital security.
DeFi-Access Product
There is a high chance of depositor loss in extreme market conditions. Indicates the product may provide investors with well-managed risk-adjusted returns and capital security.
DeFi-Access Product
There is a high chance of depositor loss in extreme market conditions. Indicates the product may provide investors with well-managed risk-adjusted returns and capital security.
Buy, Hold & Sell Product
Safe, the chance of loss to depositors is low. Indicates a very strong level of confidence that the product can provide investors with well-managed risk-adjusted returns and capital security.
Asset Volatility Risk
Medium Low RiskRisk of significant or a total loss on an entity's crypto asset holdings due to asset volatility. This risk varies between cryptocurrency assets.
Operational Risk
Medium Low RiskRisk of loss caused by flawed or failed processes, policies, systems or events that disrupt business operations; employee errors and criminal activities such as fraud.
Counterparty Risk
Medium Low RiskIf Block Earner or a 3rd party becomes insolvent, is hacked or is exploited by a malicious actor, your funds may be at risk, and you may incur partial or total loss of your cryptocurrency.
Market Risk
Medium Low RiskRisk of loss on financial investments caused by adverse price movements. In cryptocurrency markets, this may be compounded by the liberal use of leverage.
De-risked and diversified
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