Risks

Smart contract risk

It is important to acknowledge the inherent risk that the Kiln smart contracts may contain vulnerabilities or bugs.

Our smart contracts have undergone comprehensive audits conducted by industry leaders such as Spearbit and Quantstamp. Access reports and read more about our security practices here and here.

Blockchain protocol risk

Ethereum and other supported EVM chains, are rapidly evolving technologies developed by decentralized collectives, operating independently of any central authority such as Kiln. It is important to note that, due to their nascent stage, they may contain potential errors or vulnerabilities. Consequently, these vulnerabilities could pose fund loss issue to the whole users of their networks.

DeFi protocol risk

Each supported DeFi protocol of the Kiln DeFi product are developed and maintained independently to Kiln. They may contain potential errors or vulnerabilities which could impact user funds. It is important to highlight the risk of each protocol to the end users so they can take proper informed decisions.

Rewards variation risk

DeFi protocols rewards rate, especially for lending supplying and liquidity provisioning, is highly dependent of the protocol liquidity and usage (for example the fewer the borrowing demand the less the supply rewards rate), and may present a lot of variance over time. This is independent from Kiln or the protocol itself and is purely do to market conditions and usage. Users of Kiln DeFi might see their rewards increase in high volatility market phases and diminish when the volatility get lowers without any possible guarantee.