HyperLend
  • HyperLend
  • → INTRODUCTION
    • What is HyperLend?
    • Why Hyperliquid EVM?
    • Key Features and Benefits
    • Fees and Yield
    • Partners
  • → HyperLend
    • Core Components
    • Risks
    • Oracle
    • Points
    • Fees
    • Referrals
    • Liquid Perpetual Positions
    • Liquid Hyperliquidity Provider (hHLP)
    • HyperLend Architecture
      • ↪ Liquidations
      • ↪ Tokenization
    • HyperLend Services
      • ↪How to Lend on HyperLend
      • ↪ How to Borrow from HyperLend
      • ↪ How to Loop on HyperLend
      • ↪ How to Refer on HyperLend
      • ↪ How to Share your Yield in Style
      • ↪ How to Create a Proposal
  • → HYPERTRACK
    • Introduction
    • Getting Started
    • Bot Functions
      • ↪ Watch Address
      • ↪ Remove Address
      • ↪ Liquidations Alert
      • ↪ Health Factor
      • ↪ Borrow Rate
      • ↪ Advanced Approach
    • FAQ
  • → DEVELOPER DOCUMENTATION
    • Introduction
    • API
    • Data & Indexers
    • Contract Addresses
    • Core Pools
      • ↪ pool
      • ↪ oracles
      • ↪ interest rate strategy
      • ↪ flash-loans
    • Isolated Pools
      • ↪ overview
      • ↪ key-concepts
      • ↪ liquidations
      • ↪ interest rates
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  • • Smart Contract Risk
  • • Market and Volatility Risk
  1. → HyperLend

Risks

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Last updated 19 days ago

As with all DeFi platforms, there are certain risks associated with using HyperLend, and users should be aware of them before engaging with our platform. We strive to protect user assets to the best of our abilities, but no system is completely safe.

• Smart Contract Risk

Our smart contracts have undergone rigorous auditing processes conducted by reputable auditors, including Cantina, Ackee Blockchain and Pashov Audit Group (Everything can be seen here). We will also provide a bug-bounty program, available at Github. While these audits significantly mitigate risks, residual vulnerabilities may persist despite our best efforts to eliminate them entirely. Additionally, our smart contract will undergo extensive "battle-testing" through prolonged periods of both test-net and real-world deployment and a high volume of transactions. This phase aims to mature the code by exposing it to various scenarios and interactions, thereby refining its reliability and security.

• Market and Volatility Risk

Since HyperLend allows the borrowing and lending of volatile tokens, there is always a market risk. The most common risk is a rapid devaluation of an asset used as collateral. If the protocol is unable to liquidate unhealthy loans, it will result in bad debt (a situation where the market value of total debt is greater than the value of collateral, making the protocol insolvent).

To mitigate this risk, we carefully consider which assets to list, considering both on-chain (DEX) and off-chain (CEX, OTC) liquidity.

We are working with Block Analitica to provide comprehensive risk assessments, collateral onboarding, dynamic parameter management, and continuous market monitoring.

We are also working with Hypernative to provide real-time monitoring and incident response, mitigating threats before they happen with automated detection and onchain actions.

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