Risks

Delea Protocol is designed with security and user protection as priorities. While risks cannot be entirely eliminated, our approach emphasizes transparency, user education, and advanced risk mitigation strategies. By understanding these risks and actively managing your positions, you can confidently participate in Delea and the broader DeFi ecosystem 1. Smart Contract Risks

Smart contracts are the backbone of the Delea Protocol, automating transactions and enforcing rules. However, they are not immune to vulnerabilities, such as bugs or malicious exploits.

Delea will perform regular security audits and implement isolated collateral pools for different assets. This compartmentalization ensures that issues affecting one pool, such as a devalued or compromised asset, will not directly impact others.

2. Blockchain-Specific Risks

Delea operates on the TON blockchain, which, while innovative, may face network congestion or delays. Such issues could potentially disrupt mathematical calculations within the protocol or leave it exposed to timing-based exploits.

While Delea cannot directly control the TON network, the protocol adopts best practices like contract sharding to ensure optimal performance under various conditions.

3. Collateral Depreciation

Collateral assets, such as TON, are subject to price fluctuations. A significant drop in value could reduce a user’s health factor, triggering liquidation events.

Users are encouraged to monitor their health factors closely and add collateral when necessary. Delea also provides clear tools and notifications to help users manage risks.

4. Borrowed Asset Appreciation

While Delea's stablecoin ($DONE) minimizes this risk due to its pegged nature, this issue is listed for comprehensiveness. If borrowed assets in other systems appreciate, it could similarly impact health factors and liquidations.

5. User Mismanagement

DeFi protocols require active participation and understanding. Users who fail to monitor their positions or account for market conditions could face losses.

Delea emphasizes user education and provides user-friendly interfaces and guides to help individuals manage their assets responsibly.

6. Personal Security Risks

Loss of private keys, phishing attacks, or other personal security breaches can result in irreversible loss of funds.

Delea encourages best practices in personal cybersecurity, such as using two-factor authentication, and safeguarding private keys.