Risk Disclaimer
Last Updated: November 2025
Artificial Financial Intelligence (“AFI”) is a decentralized protocol that enables users to access yield strategies, liquidity management, and on-chain financial products through smart contracts. While AFI employs audited contracts, active monitoring, and robust security measures, participation in decentralized finance (DeFi) carries inherent risks.
1. Smart Contract and Protocol Risk
All vaults and strategies within AFI operate on smart contracts deployed on public blockchains. Although AFI has undergone multiple audits by Cantina and Quantstamp, and maintains a continuous bug bounty program, unforeseen vulnerabilities or exploits may still occur. Users should understand that smart contract failures could result in partial or total loss of funds.
2. Market and Strategy Risk
AFI strategies interact with third-party DeFi protocols (e.g., Aave, Pendle, Morpho, etc.) to generate yield. Market volatility, liquidity shortages, oracle malfunctions, or protocol-level failures may adversely affect performance or returns. Yields displayed are variable and not guaranteed.
3. Counterparty and Integration Risk
AFI integrates with external systems such as lending markets, liquidity providers, oracles, bridges, and other third-party infrastructure. These external dependencies operate independently of AFI and can introduce additional layers of risk. A failure, exploit, governance change, or operational issue in any integrated protocol may impact the performance, safety, or availability of AFI’s products. AFI cannot guarantee the reliability or continued operation of any third-party service.
4. Network, Infrastructure & Blockchain Risk
AFI depends on the stability of the underlying blockchain and its infrastructure layers. Congestion, network delays, validator failures, RPC downtime, or wallet software issues may affect transaction execution. Users may also be exposed to MEV extraction, front-running, or unexpected transaction ordering. These events may cause delays, failed transactions, or financial loss beyond AFI’s control.
5. Regulatory and Compliance Risk
The regulatory environment for DeFi, tokenised assets and blockchain-native financial products is rapidly evolving and may differ across jurisdictions. By using AFI you confirm that you are solely responsible for ensuring compliance with your local laws, tax obligations, and regulatory requirements. AFI makes no representation that any product or asset offered is legal in your jurisdiction.
6. No Custody or Guarantees
AFI is a non-custodial protocol. Users retain ownership of their assets through self-custodied wallets at all times. AFI, its contributors, or affiliated entities do not provide insurance, guarantees, or repayment in case of losses caused by market movements, technical failures at your end, or third-party integrations.
7. User Responsibility
Before using AFI, users should:
Conduct independent due diligence and understand associated risks.
Use secure and verified wallet interfaces.
Avoid depositing more than they can afford to lose.
8. Participate Responsibly
Decentralized finance offers innovation and opportunity but also material risk. By interacting with AFI, you acknowledge that there are inherent risks involved, and you may incur losses due to factors beyond the protocol’s control. You should conduct your own research, assess your risk tolerance, and ensure you fully understand how the protocol operates before engaging with it. AFI is committed to transparency, security, and risk management — but DeFi always involves risk. Please participate responsibly.
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