Risks & Disclaimers
Important Notice
MaxFi is experimental DeFi software. Using MaxFi involves significant risks including the potential loss of all deposited funds. Please read and understand these risks before using the protocol.
Smart Contract Risk
MaxFi smart contracts may contain bugs or vulnerabilities. While we take security seriously, no smart contract can be guaranteed to be free of exploits. Smart contract risk is inherent to all DeFi protocols.
Market Risk
Your LP position is exposed to the underlying assets. If the assets decline in value, your position will decline in value regardless of fees earned or IL saved. Cryptocurrency markets are highly volatile and can experience significant price swings.
Impermanent Loss
MaxFi reduces impermanent loss by approximately 50% on each rebalance through DCA positioning, but it does NOT eliminate IL. You will still experience impermanent loss, especially in volatile markets with frequent rebalances.
The 50% reduction is an average based on backtests. Actual IL reduction varies based on market conditions, price movements, and whether prices retrace through your range.
Strategy Risk
There is no guarantee that providing liquidity will outperform simply holding the underlying assets. Market conditions, trading volume, and volatility all affect outcomes in unpredictable ways. Your chosen range width, delay settings, and pair selection all affect performance.
No Guaranteed Returns
Historical backtests and performance figures are based on past data and specific assumptions. Past performance does not indicate future results. Actual returns may be significantly lower than historical figures, including negative returns. Fee APRs fluctuate based on trading volume and liquidity.
Correlated Pair Risk
ETH/BTC and similar correlated pairs provide no stablecoin cushion. Both assets can decline simultaneously in a broad market downturn, and your position has no "safe" component. You have 100% exposure to crypto market movements.
Technical Risks
- • Flash loan execution depends on available liquidity in lending protocols
- • Network congestion may affect rebalance timing and gas costs
- • Oracle or price feed issues could affect execution
- • Protocol upgrades may change behavior
- • Third-party dependencies (Uniswap, Chainlink, etc.) introduce additional risk
Regulatory Risk
DeFi protocols face uncertain regulatory environments globally. Regulatory changes could affect the protocol's operation, your ability to use it, or the value of your positions. Users are responsible for understanding and complying with applicable laws in their jurisdiction.
Not Financial Advice
Nothing on this site constitutes financial, investment, legal, or tax advice. All content is for informational purposes only. You are solely responsible for your own investment decisions.
Consider consulting a qualified financial advisor before using DeFi protocols or making investment decisions. Do your own research (DYOR) and only invest what you can afford to lose.
Summary of Key Risks
- • Loss of funds — You could lose some or all of your deposited assets
- • IL is reduced, not eliminated — Expect ~50% less IL, not zero IL
- • No guaranteed returns — Past performance doesn't predict future results
- • Smart contract risk — Bugs or exploits are possible
- • Market risk — Asset prices can decline significantly
- • This is not financial advice — DYOR and consult professionals
By using MaxFi, you acknowledge that you have read, understood, and accepted these risks. You agree that you are using the protocol at your own risk and that the MaxFi team is not liable for any losses you may incur.