Risk Factors
Understanding the risks is essential before participating in SLOHM.
Smart Contract Risk
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| Bug in contracts | Low | High | Audits, testing |
| OPNet vulnerability | Low | High | Bitcoin security |
| Upgrade issues | Medium | Medium | Multisig review |
Economic Risks
Death Spiral
If confidence drops:
- Users unstake and sell
- Price falls below backing
- More users panic sell
Mitigation: Strong backing, long vesting, Bitcoin's slow exit.
Bond Debt Spiral
Excessive bonding can dilute stakers.
Mitigation: Max debt ratio (10%), dynamic discounts.
Multisig Risks
| Risk | Description | Mitigation |
|---|---|---|
| Collusion | 4+ signers act maliciously | Diverse, reputable signers |
| Key loss | Signers lose access | Backup procedures |
| Coercion | Signers forced to sign | Geographic diversity |
Market Risks
- Liquidity - May be difficult to exit large positions
- Volatility - SLOHM price can be volatile
- Competition - Other protocols may offer better yields
Regulatory Risks
Cryptocurrency regulations vary by jurisdiction and may change. Users are responsible for compliance with local laws.
Not Investment Advice
Important
This documentation is for informational purposes only. It does not constitute financial advice.
You should conduct your own research and consult with independent financial, legal, and tax advisors before making any investment decisions.
Cryptocurrency investments are highly speculative. You could lose all of your invested capital.