Risk factor

Interacting with Hats.finance platforms do not come without risks; the user should do his/her research and understand the risks.

Risk factors

Smart Contract and Software Risks

While all Hats.finance smart contracts were audited, and each of the onboarded, and soon to join vaults, checked smart contracts carefully, security audits do not eliminate risks completely. Please only supply funds that you can afford and are willing to lose.

Governance and $HAT token risks

Hats governance does not control user funds. However, the governance does control the protocol parameters such as withdrawal request period, withdrawal period, and allocation points per vault. Those parameters can affect the reward given to hackers and the availability of user funds for withdrawal.
Governance can set a high-value withdrawal request period and essentially pause withdrawals indefinitely.
The data presented on the website regarding Hats distribution might not reflect the actual user distribution for two reasons:
  • There might be calculation errors in the website front end.
  • Hats governance DAO can decide to change the Liquidity mining distribution.