Third Party Disclaimer
Last Updated on 29th July 2025
AFI is a decentralized, non-custodial protocol that powers autonomous financial markets through algorithmic agents executing risk-aware DeFi strategies 24/7. By using AFI, you acknowledge and agree to the following:
1. Use of Third-Party Protocols
AFI utilizes user-deposited funds currently in the form of stablecoins such as USDC by programmatically deploying them into various decentralized finance (DeFi) protocols, including but not limited to Pendle, Euler Finance, and similar platforms. This deployment is carried out through autonomous smart contracts governed by AFI’s proprietary algorithmic logic, which operates 24/7 without manual intervention.
It is important to understand that these external DeFi protocols are wholly independent entities. AFI does not own, operate, manage, or control any of these third-party platforms. The interaction with such protocols is purely functional, and their inclusion within the AFI ecosystem is based on technical compatibility and strategic yield optimization, not on any form of legal or commercial partnership, endorsement, or affiliation.
Accordingly, AFI disclaims any liability for the performance, conduct, security practices, or regulatory compliance of these third-party platforms. Users should exercise caution and conduct their own due diligence regarding the risks associated with interacting even indirectly with these external protocols, as any loss or issue originating from them falls outside AFI’s control.
2. Smart Wallet and Vault Token Architecture
When a user connects their external wallet (such as MetaMask or another Web3-compatible wallet) to the AFI platform, they initiate the creation of a personalized smart wallet, a non-custodial contract-based wallet unique to their account. This smart wallet serves as a secure, autonomous interface between the user’s funds and the broader decentralized finance ecosystem.
Upon depositing stablecoins (currently limited to USDC) into their smart wallet, users implicitly grant permission for those assets to be deployed into AFI’s automated, yield-generating strategies. These strategies are executed by algorithmic agents that dynamically allocate funds across a curated set of third-party DeFi protocols.
In return for their deposit, users receive a calculated amount of afiusd, a proprietary vault token issued directly to their smart wallet. Unlike stablecoins, afiusd is not pegged to the US dollar; instead, it is a yield-bearing asset whose value fluctuates over time based on the performance of the underlying strategies and the cumulative yield generated from those deployments.
The exchange rate between afiusd and the base stablecoin (e.g., USDC) adjusts algorithmically. As strategies generate yield and reinvest earnings, the value of afiusd increases, enabling users to redeem it later for more than their original deposit — assuming strategies perform favorably. Thus, afiusd acts as a tokenized representation of a share in a performance-linked yield vault, not as a fixed-value currency.
This system allows users to benefit from continuous, compounding yield without manual intervention while maintaining full ownership and control over their smart wallet.
3. Smart Contract Risks and Automation
AFI operates through a network of autonomous smart contracts that handle the full lifecycle of fund deployment, management, and yield generation. Once a user deposits assets (such as USDC) into their smart wallet, those funds are automatically routed across various third-party DeFi protocols according to predefined algorithmic strategies — without any manual oversight or intervention by the AFI team.
While this automation enhances efficiency, scalability, and neutrality, it also introduces inherent smart contract-related risks. All logic, including fund allocation, strategy selection, and token minting/redemption, is executed strictly by code. As such, AFI’s platform is entirely dependent on the functionality and integrity of both its own contracts and those it interacts with externally.
Importantly, AFI does not audit, maintain, or guarantee the operational soundness of any external smart contracts — such as those belonging to Pendle, Euler Finance, or other integrated DeFi platforms. If any of these protocols suffer from vulnerabilities like code exploits, logic bugs, oracle manipulation, or liquidity failures, the resulting impact — including partial or total loss of user funds — is beyond AFI’s ability to prevent, recover, or insure against.
Users are therefore advised to understand the non-custodial and autonomous nature of DeFi and acknowledge that participation in such environments entails a high level of technological and financial risk. Engaging with AFI implies acceptance of these risks, as well as the possibility of adverse outcomes due to the decentralized infrastructure it leverages.
4. No Liability for Third-Party Losses
AFI assumes no responsibility for any direct or indirect losses resulting from the performance or failure of third-party services, including but not limited to:
Impermanent loss, liquidation, or smart contract risk
Protocol shutdowns or regulatory actions
Loss of value due to adverse market conditions or afiusd exchange rate fluctuations
Users may also later choose to deploy afiusd into additional protocols for compounding yield, at their own discretion and risk.
5. No Guarantees of Return
AFI provides access to algorithmically managed DeFi strategies through its yield-bearing vault token, afiusd. However, users must understand that the performance and value appreciation of afiusd are not guaranteed. These returns are entirely contingent upon the behavior and yield outcomes of third-party decentralized finance protocols to which user funds are allocated. While AFI’s autonomous agents aim to optimize capital deployment for maximum yield potential, there is no assurance of profit, principal preservation, or favorable price movement of afiusd. Users may receive less than their original deposit upon redemption, particularly in scenarios of market volatility or third-party protocol underperformance.
6. Regulatory Status
AFI functions as a decentralized interface to autonomous financial strategies, interacting with various DeFi protocols that may or may not be regulated in specific jurisdictions. AFI does not conduct any legal or regulatory vetting of third-party protocols, nor does it provide legal advice regarding the permissibility of DeFi participation under local laws. It is the sole responsibility of users to ensure that their use of AFI’s platform and engagement with afiusd tokens comply with the laws, regulations, and financial rules applicable in their jurisdiction, including those governing securities, derivatives, and stablecoin usage.
7. Indemnity
By accessing or using the AFI platform and its related services, you agree to indemnify, defend, and hold harmless AFI, its developers, smart contract contributors, ecosystem participants, affiliates, and any related parties from and against any and all claims, damages, liabilities, losses, or legal expenses arising from your use of afiusd, interaction with third-party protocols, or any consequences resulting from the automated deployment of your assets. This includes, without limitation, losses due to protocol failures, regulatory actions, smart contract exploits, or user error. Your engagement with AFI implies full understanding and acceptance of these conditions.
By using AFI, you confirm that you understand the risks of deploying digital assets into decentralized finance protocols and acknowledge that AFI bears no responsibility for third-party services or outcomes.
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