Important Risks to Know
Understanding Risks in New Technology
New technologies and concepts often come with risks, and we want to be completely transparent about them. We genuinely believe that finance can evolve and we deserve better financial systems and applications. However, it's important you understand what risks you're taking when using FIVA compared to traditional banking.
While we work hard to minimize these risks, they cannot be eliminated entirely. Here are the major risks you should know about:
1. Smart Contract Risk (FIVA Platform)
What Are Smart Contracts?
Smart contracts are computer programs that automatically execute financial transactions on the blockchain. Think of them like digital vending machines - you put money in, and if conditions are met, you automatically get something out. Unlike traditional contracts that require lawyers and courts, smart contracts execute automatically based on code.
Why Do They Have Risks?
Since smart contracts are computer programs, they can have bugs or coding errors. If there's a mistake in the code, it could potentially cause funds to be lost or stolen. It's like having a bug in banking software, except the consequences can be more serious because blockchain transactions are irreversible.
How FIVA Addresses This Risk
We take smart contract security extremely seriously:
Professional Audits
We've had our code audited by two independent security companies
Trail of Bits - considered the best blockchain auditors for TON blockchain [Link to audit report]
Tonbits - specialized TON security auditors [Link to audit report]
Best Practices
Our code follows industry security standards
We use proven, tested patterns rather than experimental approaches
Multiple developers review every line of code before deployment
2. External Platform Risk
The Risk
When you deposit with FIVA, your money gets invested in external financial platforms (like EVAA, Storm Trade, Ethena, Torch Finance, and Tonstakers). If any of these services get exploited or hacked, you could lose the money that was deposited there.
How This Works
If hackers successfully attack one of these external platforms, they could potentially steal all the funds deposited there. Since your money would be on that platform at the time, you would likely lose that portion of your investment.
How FIVA Addresses This Risk
Careful Platform Selection
We only work with platforms that have proven track records
All our partner platforms have undergone independent security audits
We monitor their operations continuously
We require substantial history of safe operation before partnering
You Choose Your Risk Level
When depositing, you can see which platforms we're using
You can avoid depositing if you don't trust a particular platform
3. FIVA Team Control Risk
The Risk
As a startup, our team currently maintains some control over FIVA's smart contracts to prevent unintended behavior and fix potential issues quickly. This means you need to trust our team and our vision for the platform.
Why This Exists
Early-stage blockchain projects often need this flexibility to:
Fix bugs quickly if they're discovered
Add new features and improvements
Respond to changing market conditions
Prevent catastrophic failures
How We Minimize This Risk
Multisig Protection
We use multisig wallets, meaning multiple team members must approve any changes
No single person can execute changes or control funds
This prevents individual bad actors from causing damage
Proper Procedures
All changes follow established procedures and approval processes
Changes are announced to the community before implementation
Future Decentralization
As FIVA matures, we plan to reduce team control over time
Our goal is eventual full decentralization where the community governs the platform
4. Other Risks
There are additional risks related to blockchain technology, market conditions, and regulatory changes. For a complete overview of all potential risks, please see our detailed risk documentation: [Link to full risk docs]
Making an Informed Decision
Start small: Consider beginning with an amount you could afford to lose while you get familiar with how everything works.
Do your research: Read about the platforms we use, understand the technology, and make sure you're comfortable with the risk level.
Stay informed: Keep up with updates about FIVA and the broader blockchain finance space.
Diversify: Don't put all your savings into any single new financial technology, no matter how promising it seems.
The Bottom Line
FIVA represents new financial technology with real benefits but also real risks. We're committed to being transparent about both. While we work hard to minimize risks through audits, careful platform selection, and security best practices, we cannot eliminate them entirely.
The choice is yours: accept the higher risks of new technology for the potential of much better returns, or stick with traditional banking's safety but very low returns. We provide the tools and information - you make the decision that's right for your situation.
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