Possible Risks Associated

While Modulus Protocol is dedicated to providing a secure and reliable ecosystem, it's important to acknowledge potential risks that users may encounter. Some of these risks include:

Please note that we have our own security policies that would always be applied by our developers to make sure there won't be any subjective security risks. Please check it out at https://docs.modulus.fi/security/security-policies

Beside, to optimize the safety to our users, the protocol is secured by different Auditors, you can take a look at the reports at https://docs.modulus.fi/security/audit-reports

Dependency on Key Partner Protocols

Modulus Protocol may integrate with third-party protocols like Lido or Chainlink for specific functionalities. If these partner protocols experience technical issues, vulnerabilities, or operational disruptions, it could impact the overall functionality and reliability of Modulus Protocol.

Token Price Volatility

The value of tokens within the Modulus Protocol ecosystem can be subject to market fluctuations and volatility. Users who hold these tokens may experience undesirable drops in their value, affecting their overall portfolio.

Regulatory Changes

The blockchain and cryptocurrency landscape is still evolving, and regulatory changes in various jurisdictions can impact the legality and operation of the Modulus Protocol. Users may be exposed to legal or regulatory risks that could affect their participation in the ecosystem.

Network Congestion and Delays

The blockchain network's congestion and scalability limitations could result in delays or higher transaction fees. Users may experience inconvenience and increased costs during periods of high network activity.

User Error

Interacting with decentralized protocols requires a certain level of technical knowledge. Users who make errors in transaction execution, such as sending tokens to incorrect addresses, may face irreversible loss of funds.

Hacking and Phishing Attacks

The decentralized nature of blockchain can make users susceptible to hacking and phishing attacks. Malicious actors may impersonate the protocol, create fake websites, or use other tactics to deceive users into revealing sensitive information.

It's important for users to conduct thorough research, exercise caution, and stay informed about potential risks when participating in the Modulus Protocol ecosystem or any blockchain-related activities. Modulus Protocol is dedicated to implementing security measures to mitigate these risks, but users should also take proactive steps to protect their own interests.