Risk Disclosure

Risk Disclosure

Important information about the risks involved in using Activ Finance

Important Warning

Cryptocurrency and DeFi investments involve significant risks. You could lose some or all of your invested capital. Only invest what you can afford to lose. Past performance does not guarantee future results.

Understanding the Risks

Before using Activ Finance, you should carefully consider the following risks. This is not an exhaustive list, and you should seek professional financial and legal advice if needed.

About Activ Finance: We provide a non-custodial frontend interface. Your funds are deposited directly into smart contracts operated by AggLayer (Polygon Labs) and Morpho Protocol. Activ Finance never has custody of or access to your funds. We are only responsible for the frontend interface and ACTIV token distribution.

1. Smart Contract Risk

Risk Level: Medium

Smart contracts are self-executing programs on the blockchain. While our contracts and the protocols we use (Morpho, Vault Bridge) have been audited by reputable security firms, no audit can guarantee 100% security.

  • Undiscovered vulnerabilities could be exploited by malicious actors
  • Bugs in code could lead to unexpected behavior or loss of funds
  • Upgrades to protocols could introduce new risks
Our Mitigation: Multiple independent audits, battle-tested protocols (Morpho), and use of established infrastructure.

2. Bridge & Infrastructure Risk (AggLayer)

Risk Level: Medium

The underlying infrastructure is provided by AggLayer (Polygon Labs). Activ Finance is a frontend interface only - we do not operate the bridge or vault infrastructure.

  • Bridge infrastructure could experience downtime or delays
  • Security vulnerabilities in bridge contracts could be exploited
  • Network congestion could delay transactions
  • Validator/sequencer issues could affect bridged assets
Infrastructure Provider: AggLayer is Polygon's unified bridge infrastructure with extensive security measures. Review AggLayer Terms of Use for more details on the infrastructure.

3. Stablecoin Risk

Risk Level: Medium

Stablecoins (USDC, USDT, USDS) are designed to maintain a 1:1 peg with the US dollar, but this peg is not guaranteed.

  • Stablecoins could temporarily or permanently lose their peg
  • Issuer insolvency or regulatory action could affect stablecoin value
  • Bank failures or reserve issues could impact backing
  • Regulatory changes could affect stablecoin operations
Our Mitigation: Supporting multiple established stablecoins (USDC, USDT, USDS) to provide options and reduce single-issuer risk.

4. Variable Yield Risk

Risk Level: Medium

Yields and interest rates in DeFi are variable and not guaranteed. The returns you see are estimates based on current market conditions.

  • APY/APR can fluctuate significantly over time
  • Market conditions affect lending and borrowing rates
  • Past performance does not guarantee future results
  • Yield could be lower than expected or even zero in extreme conditions
Our Mitigation: Transparent reporting of yields, using established yield sources (Morpho vaults), and diversified portfolio strategy.

5. Market & Volatility Risk

Risk Level: High

Cryptocurrency markets are highly volatile. The value of your assets can decrease significantly in a short period.

  • ETH and other crypto assets can experience extreme price swings
  • Market crashes could affect the value of your holdings
  • Liquidation risks in leveraged positions (yield strategy)
  • Black swan events could cause unprecedented losses
Our Mitigation: Diversified portfolio allocation (stablecoins, ETH, BTC, Gold), conservative leverage ratios, and your principal stays in Morpho.

6. Regulatory Risk

Risk Level: Medium

The regulatory landscape for cryptocurrencies and DeFi is evolving and varies by jurisdiction.

  • New regulations could restrict or prohibit certain activities
  • Tax treatment of crypto yields may vary and change
  • Access to the platform could be restricted in certain jurisdictions
  • Compliance requirements could affect service availability

7. Technical & Operational Risk

Risk Level: Low

Technical issues could temporarily affect access to your funds or the platform.

  • Website or app downtime
  • Network congestion affecting transactions
  • Wallet compatibility issues
  • Third-party service disruptions

8. Loss of Private Keys

Risk Level: High (User Dependent)

If you use a self-custody wallet, you are solely responsible for securing your private keys and recovery phrases. Activ Finance never has access to your private keys or funds.

  • Lost private keys cannot be recovered - not by Activ Finance, not by anyone
  • Stolen keys mean permanent loss of assets
  • No password reset or account recovery for blockchain wallets
  • Activ Finance cannot freeze, recover, or access your funds under any circumstances
Our Mitigation: Email-based account option for users who prefer not to manage their own keys.

Risk Acknowledgment

By using Activ Finance, you acknowledge that you have read and understood these risks. You accept full responsibility for any losses that may occur. You confirm that you are investing only funds you can afford to lose and that you have considered your personal financial situation.

Questions About Risks?

If you have questions about any of these risks or need clarification, please contact us:

support@activ.finance WhatsApp Support